Caricom/Cariforum Fresh and Processed Produce Market- Opportunity Study

FOOD AND AGRICULUTRE ORGANIZATION

CARICOM/CARIFORUM FRESH AND PROCESSED PRODUCE MARKET- OPPORTUNITY STUDY

A REPORT PREPARED FOR THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS UNDER THE PROJECT “PROMOTING CARICOM/CARIFORUM FOOD SECURITY” (PHASE II) (GTFS/RLA/141/ITA)

Prepared by: Fitzroy James FAO Marketing Consultant May, 2009 ii

Acknowledgement The author wishes to acknowledge with great appreciation the assistance and support provided by farmers, the private sector (hotels, food service, retailers, and supermarkets), the CARICOM secretariat, various government agencies and fresh produce and marketing boards that were consulted during the in-country field visits. The author is also grateful for the administrative and logistic support provided by the Project Coordinating Unit (PCU) of the GTFS/RLA/141/ITA “Promoting CARICOM/CARIFORUM Food Security” project, in particular Kathy Rovedas, Secretary and Marlene Callender, Project Administrator. In addition, the technical guidance and feedback provided by the FAO and PCU is very much appreciated. Finally, this report is a result of a combined effort by several consultants and the author would like to thank Dr. Andre Gordon, Mr. Don Fletcher and Mr. Govind Seepersad for their huge and valuable contributions to the report. Fitzroy James

Disclaimer Every effort has been made to ensure the accuracy of the information contained in this publication. The author does not accept any responsibility or liability for error or fact omission, interpretation or opinion presented and any cost(s) associated as a result of any decisions based on this information. Any views or opinions expressed do not necessarily represent the official view of the FAO.

CARICOM Fresh and Processed Market Opportunity Study Table of Contents

Table of Contents ...... i List of Tables ...... ii List of Boxes ...... iii List of Abbreviations ...... iv EXECUTIVE SUMMARY ...... v 1. INTRODUCTION ...... 1 2. CARICOM FRESH AND PROCESSED PRODUCE INDUSTRY ...... 2 Introduction ...... 2 Fresh and Processed Produce Industry Overview ...... 2 Fruit Sub-Category ...... 3 Roots and Tubers Sub-Category ...... 9 Vegetables Sub-Category ...... 14 Herbs and Spices Sub-Category ...... 18 Pulses and Nuts Sub-Category ...... 22 3. TRADE IN CARICOM FRESH PRODUCE PRODUCTS ...... 24 Introduction ...... 24 CARICOM Trade in Fresh and Processed Produce ...... 24 Intra-Regional Trade ...... 26 Market Opportunities and Prospects ...... 29 Extra Regional Trade...... 30 Market Opportunities and Prospects ...... 38 Summary...... 38 4. VALUE CHAIN ANALYSIS AND SELECTION ...... 39 Introduction ...... 39 Profile of Value Chains Short listed for Selection...... 39 Conclusion: Value Chains Subsequently Selected at the Workshop ...... 57 5. SUMMARY OF MAIN FINDINGS / RECOMMENDATIONS ...... 59 Main findings: ...... 59 Domestic market ...... 59 Export markets ...... 60 Recommendations ...... 62 References...... 64 Appendix 1: Value Chain Maps ...... 66

List of Tables

Table 1: CARICOM Match of Fresh Produce Import and Export Interests ...... 1 Table 2: Question Guide Used in Developing Value Chain Profiles ...... 3 Table 3: Study Methodology...... 1 Table 4: Availability of Fresh Produce in CARICOM (MT), 2006 ...... 2 Table 5: CARICOM Production and Availability of Fresh Fruit Produce (MT), 2006 ...... 4 Table 6: CARICOM Production and Availability of Roots and Tubers (MT), 2006 ...... 9 Table 7: CARICOM Production and Availability of Fresh Vegetable Produce (MT), 2006...... 14 Table 8: CARICOM Production and Availability of Fresh Herbs and Spices (MT), 2006 ...... 18 Table 9: CARICOM Production and Availability of Fresh Pulses and Nuts (MT), 2006 ...... 22 Table 10: Total Trade in Fresh and Processed Produce in CARICOM, 2003-2006 ...... 24 Table 11: Intra Regional Trade of Fresh Produce in CARICOM, 2003-2006 ...... 26 Table 12: Intra Regional Trade of Processed Produce in CARICOM, 2003-2006 ...... 28 Table 13: Extra Regional Imports of Fresh and Processed Produce in CARICOM, 2003-2006 ...... 30 Table 14: CARICOM Exports to Main Extra Regional Markets, 2006 ...... 31 Table 15: CARICOM Exports of Fresh Produce to the United Kingdom, 2003-2006 ...... 32 Table 16: CARICOM Exports of Fresh Produce to the United States, 2003-2006 ...... 34 Table 17: CARICOM Exports of Fresh produce to Canada, 2003-2006 ...... 37 Table 18: Shortlist of Value Chains ...... 39 Table 19: A list of Selected Value Chains for Promotion and Development...... 57 Table 20: The Alternative list of Value Chains ...... 58

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List of Boxes

Box 1: Project Profile ...... 1 Box 2: Intra Regional Exports of Selected Fresh Produce from Guyana (MT), 2004-2008 ...... 6 Box 3: Selected Fresh Produce Exports from Jamaica, 2006-2007 ...... 10 Box 4: Trinidad and Tobago Roots and Starch Crop Domestic Gap (MT), 2007 ...... 11 Box 5: Exports of Root Crop from St Vincent and the Grenadines (MT), 2006...... 12 Box 6: Ackee Export from Jamaica (kg), 2006-2007 ...... 16 Box 7: Selected Herbs and Spices Export from Jamaica, 2006-2007 ...... 20 Box 8: Growing Cashew in Belize ...... 23 Box 9: Fresh Papaya Imports to the United States (MT), 2003-2007 ...... 35 Box 10: Market Prospects for Developing country of Certified Fruits and Vegetables ...... 36 Box 11: Value of Imports of Fresh Produce from Guyana to Canada (US$'000) cif, 2004-2008...... 38

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List of Abbreviations

BAPS Group Belize Agro-Productive Sector Group BAS Barbados Agricultural Society CABA Caribbean Agribusiness Association CaFAN Caribbean Farmers’ Network CAIC Caribbean Association Industry and Commerce CARDI Caribbean Agriculture Research and Development Institute CARICOM Caribbean Community CARIFORUM Caribbean Forum of the African Caribbean and Pacific States CARIRI Caribbean Industrial Research Institute ECTAD Eastern Caribbean Trading Agriculture and Development Organization EU European Union FAO Food and Agriculture Organization GABA Guyana Agri Business Association GFAFO Grenada Federation of Agricultural and Fisher-folk Organizations GMNIB Grenada National marketing and Import Board IICA Inter American Institute for Cooperation on Agriculture MFI Multilateral Financial Institutions MNIB Marketing and National Import Board MSME Medium, Small and Micro Enterprises NAMDEVCO National Marketing and Development Cooperation New GMC New Guyana Marketing Corporation NIPPA Nature Island Pineapple Producers Association OECS Organisation of Eastern Caribbean States TTABA Trinidad and Tobago Agribusiness Association UK United Kingdom USA United States of America UWI University of the West Indies WINFA Windward Island Farmers Association

Currency The currency unit used throughout this report is the United States Dollar (USD$), unless otherwise stated.

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EXECUTIVE SUMMARY

Introduction The CARICOM Fresh and Processed Market Opportunity Study was conducted during March and April 2009. The methodology used included desk research on production and trade databases, review of recent fresh and processed produce industry studies and field visits and interviews. The quality and reliability of the available production and trade data posed some limitations on the analysis. However, all attempts were made to validate the existing data and to ensure that the conclusions arrived at were in line with observed industry trends. This report documents the findings of the CARICOM1 Market Opportunity Study. The study was undertaken to identify the 5 national and / or regional agri-food value chains, which will become pilot projects for support by FAO with the objective of becoming demonstration models to catalyse further adoption across the region, demonstrating private sector led, value chain approaches to reduce rural poverty and enhance national and regional food security.

Key Findings Size and value of the Fresh and Processed Produce Market In 2006 the CARICOM fresh and processed produce market amounted to 2.7 million metric tonnes valued at US$2.1 million. Fresh produce accounted for 87 percent by volume and 83 percent by value of this market. Domestic production contributed 92 percent of the total fresh produce market. Fresh Produce Availability Total availability of fresh produce in 2006 amounted to 2.1 million metric tonnes valued at US$1.6 million. Fruits were available in the largest amount (63%) followed by roots and tubers (23%), vegetables (9%), herbs and spices (4%), and pulses and nuts (1%). Per capita availability of fresh produce in CARICOM averaged 365 kilograms in 2006. Dominica (1,320kg), Belize (1,108kg) and St. Vincent (391kg) had the highest per capita availability and St, Kitts and Nevis (97kg), Trinidad (103 kg) and Grenada (130 kg) the lowest. The per capita availability in CARICOM was highest for fruits (247kg) and roots and tubers (80 kg). Distribution Channels Distribution channels varied significantly among product categories and between countries. Domestic markets utilized 88 percent of domestic production and imports of fresh produce and 12 percent of domestic production were exported. Fruits had the highest percent exports (40%) followed by herbs and spices (8%), roots and tubers (5%), vegetables (4%) and pulses (3%). Supermarkets were the major outlet for fruits while the local public market was the largest for roots and tubers. The hotel food service sector was an important user of fresh fruits and vegetables accounting for 5 to 15 percent of domestic availability. Trade The trade of fresh and processed produce experienced a bearish rally between 2003 and 2006 decreasing by 2 percent in volume but increasing 7 percent in value (US$600 million in 2006). Imported processed products were the only category increasing in both volume (5%) and value (9%) traded. Intra regional trade in fresh produce showed a similar bearish rally decreasing an average 1 percent annually in volume and increasing 3 percent in value. Roots and tubers was the main category showing growth in volume and value. Intra regional trade of processed produce; however, was positive with growth averaging 5 percent in

1 Excluding Haiti and the Dominican Republic

CARICOM Fresh and Processed Market Opportunity Study vi volume and 17 percent in value during the same period with fruits, herbs and spices showing the strongest growth. In 2006, the United Kingdom was the largest export market accounting for 50 percent of exports from CARICOM followed by the United States (21%) and exports to the region (20%). Market Gaps and Challenges The following market gaps were identified from the market research and field visits:  Unmet demand for high value fruits and vegetables (salad fruits – melons, pineapples, cantaloupes; romaine and iceberg lettuce, coloured peppers, broccoli, cauliflower, etc) in domestic markets, in particular the agro-tourism sectors;  Unmet demand for healthy and safe foods such as organic fruits and vegetables in the more sophisticated segments of the local markets;  Unmet demand for products that are produced using environmentally and socially acceptable practices in the developed markets such as the United Kingdom e.g. ‘Fair Trade’ label, certified organic production;  Disorganized unplanned production with limited alignment between production and market requirements;  Absence of quality assurance systems, adherence to good agricultural practices (GAP), HAACP, BRC and Euro GAP, official standards for grades, traceability systems and facilities for product and residue testing;  High cost of certification and conformance to international standards;  Potential for growth in value added and convenience food items such as pre-cut vegetable salads, fruit salads, peeled vegetables and root crops etc.;  Integrating small farmers in the commercial marketing systems;  Limited Intra Regional transportation and financing for investment in agriculture production and agro processing. Market Opportunities The main potential market opportunities identified during the field visits and market research were as follows: Domestic Market  Freshly cut and packaged fruit salads (i.e. melon papaya, pineapple) prepared for domestic market (i.e. food retail, food services) and the hospitality industry (i.e. hotels);  Freshly cut and packaged vegetables for the domestic market and the hospitality industry;  Processing of fruits into tropical fruit juices, i.e. passion fruit, pineapple, Barbados cherry and soursop;  Import substitution opportunities for selected tomatoes that are grown in green houses to take advantage of the off-season when imports fill the shortfall in supply;  Import substitution of carrots, onions, cucumbers and brassicas  Fresh cut and packaged vegetables for export to inter-regional markets;  Roots and tubers for import substitution of white potato including frozen products such as French fries by cassava, sweet potato, and domestically produced white potatoes;

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 Other new semi-processed/retail ready roots, tubers and stables which replace products currently only cooked in households and restaurants, i.e. pre-cooked plantain, frozen pre-cut cassava, dasheen on vegetables and eddoes packs for the domestic market. This also includes mixed frozen root soup packs targeting the domestic market;  Herbs and spices, including fresh pepper, ginger and processed sauces, jellies and jams for the domestic and export markets;  Processed herbs and spices, including hot pepper sauce, onions and condiments. Regional Markets  Fresh fruit for main inter-regional markets and other tourist destinations with limited domestic production, such as Barbados;  Pre-cut and packaged roots and tubers;  Processed cassava (i.e. cassava flour) (note: research work is currently undertaken by CARDI in Trinidad and Tobago), i.e. market opportunities for processors but also for farmers with the potential to increase cassava production and depending on the price, development of imported feed ingredients (i.e. corn);  Fruit juice production, i.e. citrus and pineapple;  Processing of hot pepper sauce and coconut water:  Import substitution of chilli peppers from Latin America and Dominican Republic to satisfy demand in hot pepper sauce processing industries in Jamaica and Trinidad and Tobago,  Primary processing of coconut water in Guyana and Trinidad and Tobago. Extra-Regional Markets Overall, the market opportunities for the extra regional markets will continue to rely on already established export links and market contacts.  In the UK market, sweet potato and dasheen are believed to have potential for growth, given the demand for these exports and some favourable transport linkages. Other opportunities include a niche market for products such as pickled gherkins and hot pepper sauces targeting the large Caribbean population.  For the US market, potential market opportunities exist in the organic and certified market segments for fruits and vegetables. Especially, organic pineapple and mangoes have good prospects given the growing market demand and the growth of imports in the market over the years.  Herbs and spices as well as pulses and nuts have good prospects for the Canadian market. These exports have enjoyed growth over the years, although it represents a small amount of the total exports from CARICOM into this market.

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Short Listed Value Chains: Having explored the opportunities identified by reviewing the secondary data sources and existing studies, the market opportunity consultants conducted interviews with food retailers, hotel operators, agro- processors, exporter associations, agri-business associations, farmers’ organisations and government officials to develop profiles of several value chains for further development. Field interviews were conducted in all CARICOM states except Haiti and St Kitts and Nevis. A list of value chains explored by the consultants in the field was presented to the regional value chain workshop for selection. The fourteen value chains short listed for further profiling are summarized in the table below. For each of the value chains, a 4 to 6 page profile was prepared which included in many cases a description of the chain, a value chain map, analysis of market opportunities, a comparison of price competitiveness, a value chain margin build up, a gap analysis and some indication of interventions required. Summary profiles of the value chains are provided below.

Shortlist of Value Chains

No Production Market Commodity/Product Farmers Organisation Country Country 1 Antigua and Antigua and Barbuda Small Ruminants Antigua and Barbuda Livestock Barbuda Improvement and Cooperative Society

2 Antigua and Antigua and Barbuda Onions and Carrots CABA – Antigua and Barbuda Barbuda Fresh

3 Barbados Barbados Onions Fresh/Processed Barbados Agricultural Society (BAS) Condiments

4 Belize Belize Hot Pepper Belize Agro-Productive Sector Group USA Fresh and Sauces BAPS Group/Hot Pepper Association

5 Belize Belize Pineapple BAPS Group/Buenos Amigos Fresh and Juiced (Pineapple) Cooperative

6 Dominica Dominica Pineapple Nature Island Pineapple Producers Martinique Organic Fresh Association (NIPPA)

7 Grenada Grenada Sour Sop Grenada Federation of Agricultural and Trinidad and Tobago Fruit and Pulp Fisher-folk Organisations (GFAFO)

8 Guyana Guyana/CARICOM Coconut Water Guyana Agribiz Association/Pomeroon USA/Canada Bottled Women’s Agro Processors Association

9 Guyana Trinidad and Tobago Eddoes /Plantain GABA/Kuru kuru Framers Association for Frozen Packs

10 Jamaica Jamaica Ackee Jamaica Agro Processors Association UK/USA Canned/Tetra Packs

11 Jamaica Jamaica Carrots Christiana Potato Growers Farmers Retail Packs/Exports Association

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No Production Market Commodity/Product Farmers Organisation Country Country 12 St Lucia St Lucia Salad Fruit/ Papaya/ Bellevue Farmers Cooperative Ltd Hotels Melon/Pineapples

13 St Vincent UK Roots/Sweet Potato/ Caribbean Farmers Network/ECTAD/ and the Trinidad and Tobago Dasheen Agricultural Society of Trinidad and Grenadines Tobago 14 Trinidad and CARICOM Papaya National Papaya Association Tobago USA/Canada Fresh

Selected Value Chains and Alternates The following value chains and alternates were selected at the ‘Kick-Off’ Workshop: A list of Selected Value Chains for Promotion and Development

Country Value chain: commodity / Market Agri-food organisation product Belize Hot pepper Belize Tourist and BAPSGroup / Belize Hot fresh and sauces Extra regional Markets Pepper Association Dominica Pineapple Regional and DOMs Nature Island Pineapple organic fresh Producers Association (NIPPA) Jamaica Ackee Tourism and Extra Jamaica Agro Processors canned and tetra pack regional Markets Association St Lucia Papaya / melon / pineapple - Domestic Hotels and Bellevue Farmers Cooperative salad fruits Supermarkets Ltd and Other Associations St Vincent and Roots / sweet potato / Regional and Extra Caribbean Farmers Network / Grenadines dasheen fresh and processed regional ECTAD

The Alternative list of Value Chains

Country Value chain: commodity Markets Agri-food organisation / product

Grenada Sour sop Regional and Extra GFAFO fresh and pulped regional markets Antigua and Barbuda Onion – fresh Domestic and regional CABA – Antigua and Barbuda markets Guyana Bottled coconut water Regional and extra GABA/ Pomeroon Women’s regional markets Agro Processors Association Processors Association Guyana Eddoes / plantains Regional markets via GABA/ Kuru Kuru Farmers fresh for frozen packs Trinidad and Tobago Association processor

From the outset, the process to select five (5) value chains for promotion and development sought to focus the use of limited resources to a few countries (5), the regional markets, commodities prioritized by

CARICOM Fresh and Processed Market Opportunity Study x member states and the fresh produce industry where impact on small farmers is thought to be greatest. In addition, attempts were made to identify value chains which were common to several member states so that the upgrading strategies developed for these chains could serve as a demonstration effect for similar chains in other countries. The process of selecting the chains included review of trade and production statistics to identify opportunities and gaps in supply; review of commodity studies; field work to explore, profile and validate value chains which were largely previously identified; and the presentation of a short list of value chains to a workshop of regional private and public agro-food stakeholders for chain selection.

Recommendations The following recommendations are made to assist in the promotion and development of value chains: There is a need to provide regular information on the market situation and outlook of fresh produce in CARICOM. Better monitoring and collection of data (production and trade) at the regional level is required, which at the moment appears to be ad hoc and sporadic. Notwithstanding this, there are real efforts in the industry to provide this information with regular reports provided by national marketing agencies such NAMDEVCO. A possible intervention of the FAO- GTFS/CARICOM/CARIFORUM Project is to facilitate such activity which could provide a better foundation for informed planning and for overall credible policy making. Upcoming value chains promotional work needs to include economic appraisals of costs and margins along the value chains as well as farm enterprise budgets. This would facilitate the monitoring of improvements in profitability, incomes and, if labour is included, effects on employment for all relevant actors along the chain. In addition, there addition impacts on overall food security and the enhancement of rural livelihoods may be monitored. Based on the production and processing potential available, the project will make an attempt to explore new markets in Europe and promote Caribbean produce and food, especially in Italy. In general and to be successful and become a sustainable supplier to modern export markets, it is important to target niche and speciality markets for i.e. fair traded and organically certified products and work towards the establishment of a “Caribbean brand.” Such a brand should guarantee customers quality and safety with a Caribbean flair. Low volume, high value and non-perishable products are seen to have an advantage over perishable fresh produce which, in addition, face quarantine and phyto-sanitary as well as more stringent food safety barriers. The project will promote niche and speciality marketing when the number of beneficiaries justifies this.

Further Work Further work would involve detailed analysis of the 5 value chains that were selected at the Kick off Workshop, development of specific projects for the development of these chains and implementation of the proposed interventions.

CARICOM Fresh and Processed Market Opportunity Study 1

1. INTRODUCTION

Food Security Project The Project is the second phase of the “Promoting CARICOM/CARIFORUM Food Security Phase II (GTFS/RLA/141/ITA)” and a core part of the Caribbean Regional Programme for Food Security. Studies conducted during the first phase of the Project showed that the challenges faced by CARIFORUM in ensuring food security and addressing broader welfare objectives outcomes originate from different sources, including smallness, vulnerability to natural disasters, a changing economic environment characterised by a lack of international competitiveness and loss of preferential markets and a rules-based approach to agricultural policy. Box 1: Project Profile

Project: Promoting CARICOM/CARIFORUM Food Security - Phase II Project Symbol: GTFS/RLA/141/ITA Phase II Donor: Government of Italy Contribution: Euro 2 438 946 Government Implementing Agency: CARICOM Secretariat and national level partners. Implementing Agency: FAO - Food and Agriculture Organization of United Nations Duration: January 2008 to December 2010 Location: Regional Project Management Unit/Commodity Chain group: Port of Spain Food Security Policy Advisor: CARICOM Secretariat, Guyana The Project supports the development of a regional CARICOM/CARIFORUM food security policy and the role of the agricultural sector herein by strengthening the capacity of the CARICOM Secretariat in providing food policy advice and guidance to member governments, and by building up regional and national capacities of associations along the value chains of non-traditional agriculture commodities from production to a range of domestic, regional and export markets. A network of national farmers and agribusiness associations will be strengthened in the region to support continued development of value chains in the CARICOM/CARIFORUM countries. It is expected that all of the stakeholders along selected value chains will benefit from this support and result in more sustainable business relationships. The Project will initially work on selected commodities; support project activities in a limited number of locations and seek close collaboration with other donor-funded projects. The Project will benefit farmers and farmer groups producing non-traditional commodities, traders and exporters of the local, regional or international markets, agri-food processors, buyers, retailers, professional and inter-professional associations, marketing organizations and, more broadly, food insecure and poor households. The overall objective of the Project is to improve the food security situation of the CARICOM/CARIFORUM states at different levels through strengthening the food policy environment and the support services to promote efficient and sustainable food systems. The Project has five main results: I) Agriculture Development Unit at CARICOM secretariat strengthened; II) Institutional framework for agribusiness and enterprise development strengthened; III) Commodity value-chains development strengthened; IV) Partnership and strategic market alliances strengthened and V) Farmer based organizations, production skills and agro-processing strengthened.

CARICOM Fresh and Processed Market Opportunity Study 2

The Project includes two teams working on each of the two main components: a Policy Support Team and the Value Chain Team. The Policy Support Team is hosted in the CARICOM Secretariat, while the Value Chain Team is based at the Trinidad and Tobago at FAO office. Country focus For regional activities, such as regional workshops, includes all member states of CARICOM CARIFORUM. For national activities this project focuses its in-country work on a limited number (5) of CARICOM countries i.e. excluding Haiti and the Dominican Republic. As a result the market opportunity study focused is research on the CARICOM markets, not including Haiti.

Study Objectives The study was undertaken to identify the 5 national and /or regional agri-food value chains, which will become pilot projects for support by FAO with the objective of becoming demonstration models to catalyse further adoption across the region, demonstrating private sector led, value chain approaches to reduce rural poverty and enhance national and regional food security. Market focus Among the project goals is the need to align production to available market opportunities and to integrate small subsistence farmers and agro-processors into the commercial marketing system. The key markets considered were the domestic markets, the regional markets and with somewhat lesser emphasis on the main extra-regional export markets of the United Kingdom, United States and Canada. Product focus: Why fresh and processed produce? The Project considered the wider range of agri-food value chains and decided to focus on a limited number of chains and commodities to increase impact. The fresh produce category was selected since this is an area where there are many small farmers with a high concentration of women and young farmers. The fresh produce sector also provides raw materials for the growing agro-processing industries in these countries. Also, the project took the opportunity to use the work of Ranjit Singh et al on the regional small ruminant industry to present the small ruminant value chain to the workshop. However the emphasis is to work with a limited number of chains which can serve as a demonstration effect and thereby catalyze the use of value chain analysis and promotion to improve the output quality and performance of agri-food chains across the region.

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Study Methodology The approach to the study was structured based on the following methodology. Data collection: A desk search was conducted on production and trade databases2for secondary data; A review of existing fresh and processed produce industry studies was undertaken; and Field visits and interviews to follow-up on opportunities were conducted with government agencies (Ministry of Agriculture), farmer organisations, post harvest groups, processors, importers, exporters, retailers and food service providers in the region. Analysis: A market gap analysis of fresh produce commodities value chains was undertaken. This included an assessment of current trends in production, trade in main markets and potential growth in the fresh produce sector. Priority commodities An attempt was made to align the choice of chains to the priorities of CARICOM member states. A CARISEC list which matches the member states (9) interests to import and export fresh produce commodities was used to determine commodities of regional importance. At the national level, consultants sought to dialogue with Ministries of Agriculture to determine priorities. Selection criteria The field work was guided by a series of value chain selection criteria, which were developed from those proposed in the GTFS Global Work Plan 2008 – 2010 and an assessment matrix proposed by the ValueLinks Manual3. The matrix presents the criteria and the questions which guided consultants in the field to describe the chains. Challenges and limitations The production of this report was constrained by the difficulty of obtaining reliable information, particularly for production and processed fresh produce for member states of CARICOM/ CARIFORUM. Where the report remains general rather than specific, it is because the study took a conservative approach, and remained within the limits of the information available. These challenges and limitations include:  The quality of available production, market and trade data: Production and trade figures from several sources for the region were challenging to verify and cross-check. There were variations between datasets4, and in some cases, a degree of discrepancy in which the study took a more conservative approach with estimates of volume and value that are presented.  Throughout the report, the analysis of production and market data is limited to the 2006 year. The year 2006 was used as the base reference because it was the most complete and available dataset that could be analysed.  Production figures for some countries have been skewed as a result of natural disasters i.e. hurricane Ivan that devastated Grenada and Jamaica in 2004 and flooding that affected Guyana in 2004 and 2005.

2 CRNM/UN COMTRADE, FAO STAT 3 ValueLinks Manual, the Methodology of value Chain Promotion, GTZ, 2007 4 CRNM/Comtrade, National databases, Commodity Studies and FAO STAT CARICOM Fresh and Processed Market Opportunity Study 4

 Processing industries production was difficult to collect and was therefore hard to capture the levels of transformation and the value added.  Imports of semi-processed and processed food commodities (i.e. frozen fruit and vegetables, canned fruits) form a significant part of the food consumed in the region and the study acknowledges this contribution but was unable to quantify it. In cases in which these products are of high relevance the study makes an attempt to document the cases qualitatively. A roadmap of the approach used in the study is outlined in Table 3. Field interviews were conducted in all CARICOM states except Haiti and St Kitts and Nevis.

CARICOM Fresh and Processed Market Opportunity Study 1

Table 1: CARICOM Match of Fresh Produce Import and Export Interests

Importing Exporting Countries Countries Antigua and Barbados Dominica Guyana Jamaica MNT St Lucia Suriname Trinidad and Barbuda Tobago Antigua and Barbuda Bananas Bananas Bananas Peas Beans Dasheen Dasheen Dasheen Plantains Plantains Plantains Plantains Barbados Bananas Bananas Bananas Grapefruit Mangoes Mangoes Mangoes Mangoes Oranges Oranges Papaya Papaya Papaya Pineapples Pineapples Basil Basil Cinnamon Cinnamon Nutmeg Nutmeg Onions Beans Coconuts Coconuts Corn Coffee Sweet Potato Sweet Potato Sweet Potato Sweet Potato Cabbages Cabbages Cabbages Cabbages Cabbages Carrots Carrots Christophene Lettuce

CARICOM Fresh and Processed Market Opportunity Study 2

Importing Exporting Countries Countries Antigua and Barbados Dominica Guyana Jamaica MNT St Lucia Suriname Trinidad and Barbuda Tobago Okra Okra Okra Peppers Peppers Peppers Peppers Peppers Dominica Pigeon Peas Potatoes Potatoes Potatoes Potatoes Carrots Carrots Guyana Nutmeg Nutmeg Onions Onions Potatoes Potatoes Potatoes Potatoes Carrots Carrots Carrots Jamaica Saint Lucia Pineapples Pineapples Watermelons Watermelons Watermelons Watermelons Onions Onions Sweet Potato Sweet Potato Sweet Potato Sweet Potato Cabbages Cabbages Cabbages Cabbages Cabbages Carrots Carrots Carrots Peppers Peppers Peppers Peppers Peppers Peppers Pumpkins Pumpkins Pumpkins Pumpkins Pumpkins Suriname Nutmeg Beans Coconuts Coconuts Trinidad and Tobago Dasheen Dasheen Dasheen Sweet Potato Sweet Potato Sweet Potato Sweet Potato Sweet Potato Yam Yam Yam

CARICOM Fresh and Processed Market Opportunity Study 3

Table 2: Question Guide Used in Developing Value Chain Profiles

Criteria Question Market opportunities and gaps Size and value of contribution to GDP/exports What is the size and contribution to the agri food economy/exports? High market potential/absorptive domestic demand Is the market potential /absorptive capacity of the local market high? Why? Extent of existing/potential market contacts What is the extent of existing /potential market contacts? Positive market growth prospects Are there positive growth prospects? Describe Competitiveness vs. other suppliers and substitutes How competitive is the chain to other suppliers and substitutes? Describe Impact on food security Significance and distribution of SMEs in chain How significant are the presence of small and medium enterprises in chain? Chain employment/location in rural areas Does the chain offer significant employment especially in rural areas? Describe Opportunities to increase production +/value What are the opportunities to increase production +/or value for SMEs? List and describe Farmer production, performance, profit imp. Is the opportunity for improving farmer productivity, performance profit high? Potential Regional/national priorities CARICOM/Government priority ranking Is the chain a priority for CARICOM/national governments? Describe Enabling environment support Is the enabling environment supportive of the chain? Describe Opportunities for program intervention Key actor openness to partnership/intervention Are the key farmers organisation and chain operators open to intervention? Describe Presence and seriousness of farmers organizations Are there serious functioning farmers’ organisations present? Describe Relevance of constraints to FAO intervention Are the constraints faced by the chain the type that FAO can address? Describe Relevance of cross cutting issues Gender/poverty How significant are gender and poverty issues in the chain? Environment/sustainability How significant are environment and sustainability issues in the chain? Complementarily of intervention Major donor synergies, niches, coordination Are there other agencies supporting the chain? List and describe How complementary is the FAO intervention to these? How important are coordination challenges between agencies? Adapted from GTZ ValueLinks, 2007

CARICOM Fresh and Processed Market Opportunity Study 1

Table 3: Study Methodology

Method Purpose Main Source/ Personnel Meeting Agree Methodology Fitzroy James/ Robert Best Market focus – EU/ US CARIFORUM Skype - Heiko Bammann Country focus - CARICOM Product focus – fresh/ processed Study Methodology Desk Research Farm production FAO STAT Trade volume and value - CARICOM - CRNM/ UNComtrade - EU - UK - COLEACP - USA/ Canada - USDA FATUS CARICOM Priority Commodity Lists - CARISEC - Intra regional trade Value chain opportunities and gaps Existing value chain/ agribusiness studies Field Research Validate desk research - Agriculture Ministry - Production - Statistical Departments - Processing - Marketing Boards - Trade Processed production - Agriculture Ministry - Statistical Departments - Industry Departments - Industry interviews Produce prices - Agriculture Ministry - Marketing Boards Value chain opportunities and gaps - Food retail/ Food service companies - Exporters/ Marketing boards - Agribusiness firms / associations - Farmers organizations - Ministries Draft report Intra regional and Extra regional trade - Fitzroy James Draft report Country profiles - Fitzroy James – Barbados and OECS Value chain profiles - Don Fletcher – Trinidad &Tobago, Export markets Guyana, Suriname - Andre Gordon – Jamaica, Bahamas, Belize - Govind Seepersad Power Point Caribbean Agri-Food Value Chain Kick- - Fitzroy James presentation Off Workshop - Don Fletcher - Govind Seepersad Final report - Fitzroy James – Overview/Barbados and OECS - Don Fletcher – Trinidad and Tobago, Guyana, Suriname - Andre Gordon – Jamaica, Bahamas, Belize - Govind Seepersad – Small Ruminants

CARICOM Fresh and Processed Market Opportunity Study 2

2. CARICOM FRESH AND PROCESSED PRODUCE INDUSTRY

Introduction This chapter seeks to give an overview of the CARICOM fresh-produce industry as a basis for locating the value chains which are short listed for development and promotion. In order to understand the importance of fresh produce to smaller states, the overview focuses on the English-speaking CARICOM member states and does not include Haiti or the Dominican Republic. The main sources of information are the Caribbean Regional Negotiating Machinery (CRNM/UNCONTRADE), for trade data, and FAOSTAT, for production data. Both of these have been modified with national statistics where these have become available. Data on the local production and consumption of processed produce was challenging, and as a result that data was largely omitted from the analysis. Trade data (import and exports) of these products was however available from the trade statistics. Analysis of the available trade data on processed products was also limited by the amount of mixed products in that category. Throughout the analysis, availability is used as a proxy indicator for consumption, and represents the amount of a commodity available for consumption without adjustments for post harvest losses or shrinkage in the distribution channel. Total supply represents production plus imports. Fresh and Processed Produce Industry Overview Fresh produce supply was estimated at about 2 million metric tonnes valued at over US$1.5 billion in 2006 (Table 4). Domestic production accounted for more than 90 percent of total supply. Of the total produce available, 7 percent was imported while 12 percent of total domestic production was exported.

Table 4: Availability of Fresh Produce in CARICOM (MT), 2006

Product Category Production Imports Exports Availability Availability (%) Fresh Fruits Volume (mt) 1,504,346 32,418 236,878 1,299,886 63 Value (US$) $923,083,970 $26,235,860 $105,711,573 $843,608,258 54 Fresh Roots and Tubers Volume (mt) 412,131 79,684 19,629 472,187 23 Value (US$) $395,138,002 $36,936,028 $27,647,604 $404,426,426 26 Fresh Vegetables Volume (mt) 185,983 13,964 6,804 193,143 9 Value (US$) $178,362,234 $13,582,184 $4,343,635 $187,600,783 12 Fresh Herbs and Spices Volume (mt) 36,110 41,751 2,950 74,911 4 Value (US$) $70,960,781 $27,225,646 $7,184,748 $91,001,679 6 Fresh Pulses and Nuts Volume (mt) 20,890 7,956 558 28,288 1 Value (US$) $25,551,544 $11,593,569 $695,240 $36,449,873 2 Volume (mt) 2,159,461 175,773 266,819 2,068,415 Value (US$) $1,593,096,531 $115,573,287 $145,582,799 $1,563,087,018 Source: FAOSTATS, CRNM/UNCOMTRADE, national statistics and field interviews with industry experts CARICOM excluding Haiti CARICOM Fresh and Processed Market Opportunity Study 3

Fruit accounted for the largest sub category by volume available for consumption with 63 percent, followed by roots and tubers (23%), vegetables (9%), herbs and spices (4%) and pulses and nuts (1%). Notably as sub category share fell, unit value increased as shown with the unit value of pulses and nuts being US$1,200 per metric tonne compared to US$650 per metric tonne for fruit. Roots and tubers accounted for the largest category of imports representing 45 percent by volume of total imports. Herbs and spices followed by fruits were the other significant categories of imports accounting for 24 percent and 18 percent respectively. Exports of fruits in 2006 were also considerable. This category accounted for over 89 percent of total exports by volume, around 63 percent of fresh produce available for consumption and accounted for 70 percent of total production. Citrus and bananas were the main fruit commodities dominating production and exports. Fruit Sub-Category Fresh fruit was by far the largest sub category of fresh produce available for consumption in CARICOM. Table 5 shows that there was 1,299,000 metric tonnes of fruit available for consumption in the region in 2006. This does not include exports of bananas (178,000 metric tonnes) and papayas (36,000 metric tonnes). Banana, citrus and coconuts accounted for over 90 percent followed by pineapples, mangoes, melons and apples each with less than 3 percent. All other fruit commodities made up 1 percent of available production. However, it should be noted that these statistics do not adequately reflect the production or trade of non traditional commodities, many of which are produced in small and back yard holdings and much of which is consumed by producers. Citrus is the largest fruit produced with an estimated total of 595,789 metric tonnes in 2006 and represents 40 percent of total fruit production, which is dominated by Belize and Jamaica (Table 3). Banana production accounts for 33 percent of total fruit production in the region and the main producers are Belize (28%), Jamaica (25%) and the Windward Islands (25%) of overall production. Coconuts (18%), papaya (3%), pineapples (2%) mangoes (2%) and melons (1%) were the other commodities with significant production while all other fruits comprising less than one percent of total fruit production in the region.

CARICOM Fresh and Processed Market Opportunity Study 4

Table 5: CARICOM Production and Availability of Fresh Fruit Produce (MT), 2006

Commodity Production Import Export Availability Availability (%) Citrus 595,789 3,197 13,308 585,678 45 Bananas/Plantains 499,951 7,620 178,642 328,929 25 Coconuts 275,133 465 939 274,659 21 Pineapples 32,467 742 627 32,582 3 Mangoes 27,386 - - 27,386 2 Melons 21,854 1,996 1,124 22,726 2 Apples - 8,887 2 8,886 1 Avocadoes 6,515 372 910 5,976 <1 Grapes - 5,045 27 5,018 <1 Golden apples 3,250 - - 3,250 <1 Papaya 39,300 61 36,236 3,125 <1 Pears and quinces 345 1,678 1 2,022 <1 Cherries 1,161 54 - 1,215 <1 Sour sop 1,136 - - 1,136 <1 Other fruits5 60 2,302 5,062 -2,701 0 Total 1,504,346 32,418 236,878 1,299,886 100 Source: FAOSTATS, CRNM/UNCOMTRADE, National Statistics and field interviews with industry experts CARICOM excluding Haiti

Fruit imports into CARICOM for 2006 were dominated by apples (27%), bananas (25%), grapes (16%) and citrus (10%), which made up over 76 percent of total imports. Most of the fruit imports come from the USA (62%) and from intra regional trade (34%). These imports do not include significant amounts of processed fruit that are ingredients in the production of jams, jellies and juices. Fruit exports from the region accounted for 16 percent of total fruit production. The main export commodities are banana (75%), papaya (15%), and citrus (6%). The main banana exporters from the region are Belize, Jamaica and St Lucia. Around 93 percent of total banana production6 was exported to the EU market. For citrus, the main exporters were Belize and Jamaica. Exporters of other main fruit commodities (papaya, coconut, mango, and avocado) include the Grenadines, Dominica, Belize, Jamaica, Bahamas, and Trinidad and Tobago. Processed fruit and fruit products imports in 2006 was estimated to be around 62,000 metric tonnes with a value of US$85 million, while exports amounted to 74,000 metric tonnes with a value of around US$103 million. Mixed fruits and vegetables juices were the major processed fruit products imported (26%) followed by processed citrus products (20%), 50 percent of which were imported frozen. Juices accounted for 52 percent of imported processed fruit products. Prepared and preserved products were the second largest category of processed fruit products. The latter include jams, jellies, nectars and various forms of preservations. Citrus and mixed fruits and vegetables were also the major export of processed fruit products accounting for 86 percent of total imports. Frozen product and juices also accounted for 90 percent of import commodities.

5 Other fruits: avocado, golden apples, cherries, soursop, pears and quinces, plums and sloes, cashew apple, apples, grapes, strawberries, peaches, kiwifruit, mixed berries, dates, apricots, figs, and mixed fruits. 6 Excluding banana exports from Haiti and Dominican Republic CARICOM Fresh and Processed Market Opportunity Study 5

Market Opportunities by Commodity

The following draws heavily on the “Baseline Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries”, conducted by the FAO7 in 2008 which provides more detailed country and time series information on most fresh produce. The following provides greater understanding of the status and market opportunities of main fruit commodities and is captured in modified extracts below. Citrus: oranges dominate citrus production in the Caribbean, making up more than two thirds of all citrus produced. The crop is both sold whole and processed as juice in concentrated and single strength forms. Production is concentrated in Belize and to lesser extent Jamaica, Bahamas, Trinidad and Tobago, Dominica and Suriname. Oranges are exported both as whole fruit and as juice. However, only about 5 percent of the CARICOM’s production is exported as whole fruit. In a few countries, a substantial proportion of the crop is processed and the value of regional juice exports significantly exceeds that of whole fruit exports by a factor of three or more Regional imports of orange juice are considerable, averaging 14,000 metric tonnes per annum. However, most of this is imported from within the region, which is therefore a net exporter of orange juice. Grapefruit production, at approximately one-third of orange by volume is distributed amongst a range of countries and export volumes are effectively concentrated in two countries. The Bahamas led in the export of whole fruit accounting for 92 percent of exports, while Belize accounts for 99 percent of all grapefruit and pomelo juice exports. Bananas: the estimated total banana production for CARICOM in 2006 was around 499,000 metric tonnes (Table 5). Around 178,000 metric tonnes was exported, mainly to the European Union market. Imports over the same period were estimated at around 7,620 metric tonnes and is largely intra regional trade between CARCOM member countries with the main importing countries being Barbados (3,938mt), Trinidad and Tobago (2,525mt), Antigua and Barbuda (1,000mt), and St Kitts and Nevis (45mt). Other major importing countries such as the Bahamas, which imported around 3,750 metric tonnes in 2006, is believed to be sourcing its bananas from extra regional sources. Total banana availability for consumption in 2006 was estimated at around 328,000 metric tonnes. While banana is viewed as a traditional export commodity to extra regional markets such as the EU, there is anecdotal evidence suggesting that growth in the intra regional market may offer better market opportunities for producers in the region. Plantain: plantain is widely grown in almost all the Caribbean countries. The volume of crop produced exceeds that of any other non-traditional commodity. The crop is grown almost exclusively by small-scale producers. During the five years to 2006, growth in production was observed in Belize and St Vincent and the Grenadines. Most of import of fresh plantain comes from intra regional sources and only a small surplus is exported out of the region. Plantain is not widely processed except as chips in Jamaica, which use a very small portion of overall production. Processed and cooked chips for snacks are imported into the region from Latin America.8 Cooked frozen plantain sections have been identified as a growth opportunity by one country9 Coconuts: the Caribbean produces approximately 412,000 metric tonnes of coconuts, Of this, 83 percent is produced in three countries, Jamaica (61%), Guyana, (16%), and Trinidad (6%) which have coconut oil processing facilities. Of the 11 countries producing coconuts, six export unprocessed coconuts consistently, and of these Guyana, Jamaica and Dominica account for 90 percent of exports.

7 EU funded All ACP Agricultural Commodities Programme 8 Caribbean Bakery and Snacks Association 9 Trinidad and Tobago Transformation Plan CARICOM Fresh and Processed Market Opportunity Study 6

The coconut industry has traditionally concentrated on coconut oil but is developing higher value non- traditional products such as coconut milk, coconut water and cosmetic products. In particular the chilled coconut water beverage market is developing significantly in some countries led by Jamaica, and Trinidad and Tobago and interviews with industry experts suggests this market will continue to grow rapidly (Box 2).

Box 2: Intra Regional Exports of Selected Fresh Produce from Guyana (MT), 2004-2008

Commodity 2004 2005 2006 2007 2008 2008 Growth Main Markets Value Volume (US$) (%) Fruits Copra 585 622 1,546 2,667 1,903 $946,815 27 Trinidad and Tobago, St Lucia Coconuts 45 28 37 219 259 $76,293 42 Barbados, Antigua and Barbuda Coconut water 0.18 - - 58 30 $21,773 178 Trinidad and Tobago, Barbados Watermelon 252 399 217 316 215 $96,765 -3 Barbados, Antigua and Barbuda, St Lucia Pineapple 71 43 20 42 15 $15,672 -27 Trinidad and Tobago, Barbados, Antigua and Barbuda, St Lucia Orange 12 14 23 47 15 $10,834 5 Barbados Vegetables Pumpkin 134 268 388 456 418 $25,677 26 Barbados, Antigua and Barbuda Roots and Tubers Eddoes 11 23 32 31 49 $27,605 35 Barbados, Trinidad and Tobago, Antigua and Barbuda, St Lucia

The overall performance of selected export fresh produce from Guyana has shown significant growth over the years from 2004 to 2008. The exception is pineapple and watermelon exports which have fallen 27 and 3 percent respectively over the same period. While growth in exports of these commodities has plummeted, other major exports have shown considerable market growth, notably eddoes and coconut water. In addition, exports of pumpkin and oranges have also grown apart from traditional export commodities of copra and coconuts.

Source: New GMC, 2009

Papaya: is grown in a number of Caribbean countries although only four, Belize, Guyana, Jamaica and Trinidad and Tobago produce commercially significant quantities. The bulk of production is concentrated in Belize. Approximately half of all papaya produced is exported, mainly from Belize which exports most of its production to the United States and Canada. Jamaica has exported to Canada, but has recently lost that market to Brazil as its own production has suffered from disease. The industry has expanded considerably as improved packaging and freight technologies have opened up new export markets for what was once a notoriously fragile and perishable commodity. Papaya exports from Belize grew by 91 per cent in five years to 2005 to 28,635 metric tonnes. Papaya is increasingly being used as filler for processed products such as catch-up, jams, and nectars b regional agri-processors. Pineapple: is produced in at least eight of the 15 countries in the region, especially in Jamaica, which accounts for approximately 15 percent of the region’s total production. However, less than 2 per cent of this volume is exported. Imports to the region amounts to approximately 600 metric tonnes annually, primarily to the tourist destinations of Barbados, Antigua and Barbuda, Saint Lucia, and St Kitts and Nevis. Growth in pineapple production over the five years leading to 2006 was achieved in Belize and CARICOM Fresh and Processed Market Opportunity Study 7

Trinidad and Tobago. Similarly, there was growth in exports from Dominica and Trinidad and Tobago over the same period. Apart from fresh pineapple exports, there is pineapple processing occurring in Belize, Guyana, Jamaica and most of the processed production is also consumed within the region. Mango: most CARICOM countries grow and export mangoes. An estimated total of 2,43010 metric tonnes of mangoes was exported in 2006 mainly to Canada (61%), the UK (25%) and within the region (11%). Table variety mangoes such as ‘Julie’ are classified as tropical exotics and command a premium in these markets. Assortments of other table mango varieties also have strong market appeal. The main exporters are Guyana, Jamaica and St. Vincent. Melons: watermelons are grown predominantly in Jamaica, and to a lesser extent, Suriname, Belize and Trinidad and Tobago. Less than 10% of the crop is exported and the region is neither a net exporter nor net importer of watermelons, but is approximately self-sufficient. Small and medium sized producers produce watermelons as a cash crop and sell primarily to urban centres by producers and small traders. They are retailed at market stalls and supermarkets without grading or packaging. There is no processing outlet. The market for watermelons is relatively small and unstructured. This, together with the high cost of exporting means that there is no readily available outlet for any market surplus, consequently regional prices fluctuate considerably and volumes tend to vary from year to year for the same reason. Trinidad and Tobago and Guyana experienced growth in watermelon exports by 26 per cent and 72 per cent in the 5 years leading up to 2005. Avocado: total Caribbean11 production from 2001 to 2005 was estimated to be around 1million metric tonnes and 5 percent of production comes from CARICOM countries. The main producers are Jamaica (2.4%), Grenada (0.92%), Dominica (0.40%) and Barbados (0.34%) with less significant production from other countries within the region. The region is relatively self-sufficient in avocado. In terms of trade, there is little import of avocado into the region with little intra regional trade between member countries, mainly to Antigua and Barbuda, Barbados and Trinidad and Tobago. Golden Apple/June Plum: some 3,000 metric tonnes is produced in the region annually. Industry commentators believe there is future growth in these commodities, particularly in agro-processing. Jamaica and Trinidad and Tobago are actively exploring these as potential growth options. Emerging Tropical Fruit: while the commodities above represent the major fruits available in the region several other fruit offer some potential for growth. These include soursop12, Barbados cherry13 and passion fruit for sale as fresh fruit and for agro-processing into tropical fruit juices and nectars.

10 FAO, 2008, Baseline Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries 11 Including Dominican Republic, Haiti 12 Grenada Export Strategy 2006 13 TTABA Agribusiness Development Program CARICOM Fresh and Processed Market Opportunity Study 8

Summary: Market Opportunities and Prospects

The fruit sub-category offers potential market opportunities for both fresh and processed produce. Based on the desk research that focussed largely on market and supply volume gaps and existing studies Fruit commodities with potential market opportunities include: The analysis identified banana, plantain, citrus, coconut, papaya, pineapple, melon, golden apple/june plum and emerging tropical fruits as having potential market opportunities and prospects. Fruit Value Chains Identified by Field Work for Possible Promotion: In addition, the main field work identified several fruit commodity value chains for possible promotion and development by the project. These include:  Bottled chilled coconut water from Guyana for regional markets with potential to expand to US export market,  Fresh papaya from Trinidad and Tobago for the intra regional and extra regional markets, mainly to the US and Canada,  Fresh salad fruits (i.e. papaya, pineapple) in St Lucia prepared for the domestic market (i.e. food retail, food services) and the hospitality industry (i.e. hotels)  Export of fresh plantain from Guyana for export to Trinidad and Tobago for processing (slicing, cooking and quick freezing) for the retail, hospitality, and institutional markets.

CARICOM Fresh and Processed Market Opportunity Study 9

Roots and Tubers Sub-Category Roots and tubers is the second largest fresh produce sub-category by volume in CARICOM. Table 6 shows that in 2006, there was over 472,000 metric tonnes of roots available for consumption in the region. Of this amount yams accounted for 28 percent, followed by carrots and turnips (18%), white potato (16%), cassava (12%), sweet potato (7%) mixed roots and tubers (7%)14 and dasheen (5%). It is difficult to know exactly what constitutes “mixed roots and tubers” and “mixed vegetable roots” which together represent 11 percent of the sub category but it is assumed that at least half of these are dasheen, eddoes and tannias. Regional production in 2006 was estimated to be 412,131 metric tonnes, representing 23 percent of roots and tubers available for consumption. An estimated 79,684 metric tonnes of roots and tubers were imported in 2006. White (Irish) potato accounted for 83 percent of imports and is the largest commodity by volume. This was followed by carrots and turnips (9%), mixed roots and tubers (5%), and sweet potato (1%). Most imports of roots and tubers to the region, particularly white potato comes from North America. In 2006, CARICOM exported an estimated 20,000 metric tonnes of roots and tubers. Yam is the largest export commodity making up over 30 percent of total exports. Other major export commodities include dasheen (20%), mixed roots and tubers (14%), sweet potatoes (14%) and eddoes (10%). The main export markets include other CARICOM member countries absorbing 46 percent, mainly to Trinidad and Tobago, Barbados, Antigua and Barbuda; 29 percent to the United States; 12 percent to the United Kingdom; and 8 percent to Canada. The main exporters of roots and tubers are St Vincent and the Grenadines (49%), Jamaica (45%), Dominica (4%), and Guyana (2%).

Table 6: CARICOM Production and Availability of Roots and Tubers (MT), 2006

Commodity Production Import Export Availability Availability (%) Yams 139,174 - 7,069 132,105 28 Carrots and Turnips 77,322 7,154 1 84,474 18 White (Irish) Potatoes 9,699 66,527 4 76,222 16 Cassava 56,581 104 48 56,636 12 Sweet Potato 36,995 907 2,826 35,076 7 Mixed Roots and Tubers 33,267 3,640 2,797 34,110 7 Dasheen 25,630 - 3,912 21,717 5 Mixed Vegetable Roots 20,000 378 - 20,378 4 Eddoes 10,916 - 1,950 8,966 2 Ginger 1,943 586 838 1,691 <1 Tannia 605 - 128 477 <1 Turmeric "curcuma" - 388 54 334 <1 Total 412,131 79,684 19,629 472,187 100 Sources: FAOSTATS, CRNM/ UNCOMTRADE, National Statistics and interviews with Industry Experts CARICOM excluding Haiti

14 Mixed roots and tubers, largely consisting of dasheen, eddoes and tannias CARICOM Fresh and Processed Market Opportunity Study 10

Market Opportunities by Commodity

Box 3: Selected Fresh Produce Exports from Jamaica, 2006-2007

Commodity 2006 2007 Growth (%) Yams Volume (kg) 3,574,500 8,176,753 2.29 -- Yellow 2,435,821 5,629,599 2.31 -- Sweet 331,491 906,161 2.73 -- Negro 807,188 1,640,993 2.03 Value (US$’000) 6,540,942 7,215,430 3.27 US$/kg $0.88 $1.25 22 Sweet Potato Volume (kg) 1,394,464 3,773,853 2.7 Value (US$’000) 1,311,765 2,429,855 1.85 US$/kg $0.94 $0.64 45

Exports of yams and sweet potato from Jamaica in 2007 recorded just over 2 percent growth in volume from the previous year. The main market for yam is North America, UK and to other CARICOM countries. For sweet potato, the main export market is the UK.

Source: Jamaica Ministry of Agriculture, 2007

Carrot and turnips: estimated carrot and turnip production for the region in 2006 totalled 77,000 metric tonnes. Around 7,000 metric tonnes of carrots and turnips were imported, making 84,000 metric tonnes available for regional consumption. An insignificant amount was exported in the same year and much of this export is between CARICOM member countries. While most countries in the region produce between 80-90 percent of their requirement, others like Trinidad and Tobago and the Bahamas import a significant amount of carrots and turnips. This opens up market opportunities for major producing countries like Jamaica and Suriname to supply the Bahamas and Trinidad and Tobago. Similarly, there would be market opportunities for countries in the region which have seasonal shortfalls to store surplus production through better storage technology. For example in St Lucia, St Kitts and Nevis, and Guyana with marked seasonal shortfalls maybe able to extend carrot supply with cool storage.

CARICOM Fresh and Processed Market Opportunity Study 11

White (Irish) Potato: is the third largest by volume with an estimated 76,000 metric tonnes available for consumption in the region. This makes up around 16 percent of roots available in 2006. Only 13 percent of the potatoes available for consumption are produced in the region with Jamaica accounting for 88 percent, followed by Belize (8%), Dominica (1%) and St. Kitts and Nevis (1%). Expansion of production seems to be faced with several challenges. The case of Trinidad and Tobago is instructive. In 2007, Trinidad and Tobago imported 42,500 metric tonnes of roots of which 37,800 metric tonnes or 90 percent was white potato (Box 4). Sixty five percent of imported potatoes were whole fresh and the rest is frozen pre-cut (i.e. French fries) potatoes primarily for the large fast food industry. In addition, a further amount of over 10,000 metric tonnes of preserved and prepared potatoes (chips) was also imported. The large volume of fresh and frozen potato products imported presents an opportunity for major producers such as Jamaica for import substitution and value addition. Additionally, there may be market opportunities for other value added in tropical roots such as cassava and sweet potato to substitute potato in the fast food french fries market. Box 4: Trinidad and Tobago Roots and Starch Crop Domestic Gap (MT), 2007

Root and Starch Domestic Imports Exports Availability Domestic Availability Commodities Production Gap Share (%) White potato - fresh - 25,510 563 24,947 24,947 60 White potato - frozen - 12,904 9 12,895 12,895 31 Plantain 2,500 1,100 16 3,584 1,085 3 Cassava 2,322 149 10 2,461 140 0 Dasheen 1,625 780 1 2,404 779 2 Sweet potato 1,654 468 3 2,119 465 1 Eddoes 867 674 8 1,533 666 2 Green banana - for cooking 1,100 - - 1,100 - 0 Yam 206 850 - 1,056 850 2 Tannia n/a 22 - 22 22 0 Breadfruit - not included n/a n/a n/a n/a n/a - Total 10,274 42,457 610 52,121 41,849 100

In 2007, the most available root commodity for consumption in Trinidad and Tobago was white potato and white potato products. While the bulk goes to the fast food industry, the demand for white potato illustrates that market opportunities exists for import substitution, but more importantly the need to reduce the domestic production gap for other major root and starch commodities such as plantain, dasheen and sweet potato.

Source: TTABA, 2007

Cassava: with an estimated 56,600 metric tonnes in 2006, cassava is the fourth most consumed root in the region. Virtually all the supply originates in the region with the largest producers being Guyana (50%), Jamaica (30%), and Suriname (8%). Exports and imports are of the same order indicating that the CARICOM is effectively self-sufficient in terms of this commodity. Nevertheless, field research indicated that some smaller volumes are exported extra regionally from time to time. Recently there has been a lot of interest in cassava and several member states (Jamaica, Barbados, Trinidad and Tobago, and Guyana) have initiated cassava development programs for food, livestock feed and fuel. For example the Trinidad and Tobago Agribusiness Association (TTABA) has installed a multipurpose agri-food processing plant and is currently making frozen sweet potato and cassava chips for the domestic, regional and extra regional markets. Spurred on by the recent high corn prices, the Caribbean poultry industry has been exploring the production of cassava chips for feed as up to 25

CARICOM Fresh and Processed Market Opportunity Study 12 percent of the 450,000 metric tonnes of corn (for feed) imported into the region can be substituted by cassava. However, the subsequent crash of global corn prices has made the proposition less attractive. Sweet Potato15: an estimated 35,000 metric tonnes of sweet potato were available for consumption in 2006. The root crop is produced throughout CARICOM with the major producers being Jamaica (78%), Guyana (6%), Barbados (6%), Dominica (4%) and St Vincent (3%). Less than 3,000 metric tonnes are exported with Jamaica (52%) and the St. Vincent and the Grenadines (46%) accounting for most of volume exported. About 55 percent of Jamaica’s exports go to the United Kingdom and 45 percent to Canada, while St Vincent exports within the region to Barbados, and Trinidad and Tobago (the main importer within the Caribbean)16 (Box 5). The United States market is closed to CARICOM producers since the United States has an embargo against all sweet potato imports from CARICOM countries based upon sanitary and phytosanitary concerns.

Box 5: Exports of Root Crop from St Vincent and the Grenadines (MT), 2006

Export Markets Dasheen Eddoes Sweet Potato Tannia Yam Total Trinidad and Tobago 3,463 1,818 1,095 124 311 6,811 Grenada - - 103 - - 103 Netherlands Antilles - - 35 - - 35 British Virgin Islands - - 28 - - 28 Anguilla - - 9 - - 9 Barbados - - 9 - - 9 EU/Martinique - - 5 - - 8 Grand Total 3,463 1,818 1,289 124 311 7,004

The main intra regional market for exports of roots crop from St Vincent and the Grenadines is Trinidad and Tobago. In 2006, over 6,000 metric tonnes of root crop was exported with dasheen being the largest crop by volume. Other significant crops include eddoes and sweet potato. Source: CRNM/COMTRADE

Dasheen, Eddoes, Tannia: This cluster of root crops is similar in cultivation requirements and the way in which they are consumed. It is believed that these roots constitute the bulk of “mixed roots and tubers” and “mixed vegetables” group. That being so, dasheen, eddoes and tannias may represent up to 18 percent of the sub category or 84,000 metric tonnes. These commodities are produced in large quantities in the Windward Islands, and Trinidad and Tobago and are crops of resource poor farmers producing under less than ideal conditions. Volumes of dasheen exported from the region are second only to yams. The Windward Islands are competitive in European markets as a result of the availability of low-cost shipping to Europe generated by the substantial trade in bananas. If this route were not available, the viability of dasheen exports in these countries would be substantially affected. Nevertheless, while low cost freight is available, dasheen production is expanding and the status of the crop in exporting countries is changing from subsistence to cash crop. The Windward Islands, especially St. Vincent and the Grenadines is a major exporter with close to 90 percent of exports going to Trinidad and Tobago.

15 Jamaica Social Investment Fund Study 16 CARICOM Regional Transformation Programme for Agriculture: “The Global Market for Sweet Potato: Sources of Supply and Competitiveness for the CARICOM Industry”, 2006 CARICOM Fresh and Processed Market Opportunity Study 13

Summary: Market Opportunities and Prospects

Several market opportunities for roots and tubers commodities may exist based largely on market and supply volume gaps. These opportunities were also identified by existing studies undertaken in the region as having future potential Roots and Tubers commodities with potential market opportunities include: Potential opportunities for yam will continue to rely on the export markets, particularly where there is great concentration of expats from the Caribbean. The export markets of North America and the UK will remain important and market growth will likely to be modest over the coming years. For carrots, there is potential opportunity for import substitution by local and regional production, in particular for Trinidad and Tobago and the Bahamas, provided that supply is price competitive against carrot imports from outside the region. In addition, several countries may be able to meet seasonal shortfalls through better post harvest management and storage facilities. Imports of fresh white potato and potato products are relatively high in the region and there is a potential market opportunity to substitute these imports (i.e. frozen french fries) with tropical root fries from cassava, sweet potato, and possibly even fresh potatoes in Jamaica. For sweet potato, a possible resolution of the Sanitary and Phytosanitary (SPS) concerns of the United States may open these markets to CARICOM suppliers. There is potential for cassava and sweet potato for livestock feeds, once production costs have been shown to be competitive Roots and Tubers Value Chains Identified by Field Work for Possible Promotion: Furthermore, the field work identified several roots and tubers commodity value chains for possible promotion and development by the project. These include:  Export of fresh roots (sweet potato, cassava, dasheen and eddoes) from St Vincent and the Grenadines, possibly in collaboration with other OECS member states to Trinidad and Tobago, where energy is cheaper, for processing into frozen pre-cut and retail packed roots, sold either individually or as mixed root packs, targeting the regional market.  Export of fresh eddoes from Guyana to the Trinidad and Tobago market for processing into French fries and wedges and mixed root packs for the retail, hospitality, and institutional markets.

CARICOM Fresh and Processed Market Opportunity Study 14

Vegetables Sub-Category Vegetable is the third largest fresh produce sub-category in CARICOM with an estimated volume of around 193,000 metric tonnes available for consumption in 2006. The main commodities consisted of pumpkin (26%), tomatoes (19%), cabbages (18%) and cucumbers (13%) that make up around 76 percent of vegetable available for consumption. Most vegetables in the region (96%) are produced domestically (Table 7).

Table 7: CARICOM Production and Availability of Fresh Vegetable Produce (MT), 2006

Commodity Production Import Export Availability Availability (%) Pumpkins, squash and gourds 51,130 - - 51,130 26 Tomato 35,755 1,158 427 36,485 19 Cabbages and other brassicas 31,921 3,122 538 34,504 18 Cucumbers and gherkins 25,823 63 191 25,695 13 Spinach 13,708 45 1 13,751 7 Lettuce and chicory 8,491 - - 8,491 4 Eggplants (aubergines) 6,462 34 293 6,203 3 Okra 6,095 - - 6,095 3 Cauliflower / broccoli 1,925 3,059 5 4,979 3 Mixed vegetables 3,658 3,060 4,858 1,861 1 Lettuce - 1,713 - 1,713 1 Maize, green 760 - - 760 <1 Cabbage lettuce - 708 1 708 <1 Mushroom - 417 - 416 <1 Pepper (piper) 255 463 459 260 <1 Asparagus - 99 6 93 <1 Brussels sprout - 15 - 15 <1 Globe artichokes - 8 24 -17 - Total 185,983 13,964 6,804 193,143 100 Sources: FAOSTATS, CRNM/ UNCOMTRADE, National Statistics and interviews with Industry Experts CARICOM excluding Haiti

Imports were dominated by cabbages (22%), cauliflower (22%) and mixed vegetables (22%). In addition to these, frozen and canned vegetables are also believed to be significant in volume and while this is not reflected in the analysis due to limited data available, processed vegetables are nevertheless important imports. The main importing countries in the region for vegetables in terms of volume include Trinidad and Tobago, Barbados, Jamaica and St. Lucia. Around 6,800 metric tonnes of fresh vegetables were exported in 2006. The main export commodities were mixed vegetables (71%), cabbages (8%) and peppers (7%) which are exported mainly by Trinidad and Tobago and Guyana. The main export markets for vegetables are the US, Canada and other CARICOM countries.

CARICOM Fresh and Processed Market Opportunity Study 15

Market Opportunities by Commodity

The following draws heavily on the “Baseline Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries”, conducted by the FAO in 2008 which provides more detailed country and time series information on most fresh produce. The following provides greater understanding of the status and market opportunities of main fruit commodities and is captured in modified extracts below. Pumpkins, squashes and gourds: These commodities are significant component of the Caribbean vegetable sub sector and Jamaica followed by Guyana, and Trinidad and Tobago are the most significant producers. The region is effectively self sufficient in these commodities, which are marketed both domestically and in North America. Pumpkin and squash production is undertaken by small and medium size growers in most of the region but due to limited investment, both the marketing infrastructure and the institutional framework required to achieve the necessary standards and certification for export are inadequate. In some countries, such as Trinidad and Tobago, the necessary institutions have developed appropriate standards and can certify production, and exports meet requirements of the markets. Tomatoes: are produced throughout most of the Caribbean. In 2006, tomato was the second largest vegetable available in the region (Table 7). Total production was estimated at around 35,000 metric tonnes, with around 36,000 metric tonnes available for consumption (imports making up for the shortfall in the offseason). The region is relatively self sufficient with tomato production. However, there is usually a seasonal shortfall in the off-season (generally throughout the rainy season from July to December) and demand for tomato is highest during this period, more so in countries with well developed tourism industries. Cabbage and other brassicas: Jamaica accounts for the bulk of production and is the largest exporter of cabbage. While some domestic production is consumed by the tourism sectors, most is consumed by households throughout the region as a staple vegetable. The level of national production is roughly proportional to the national consumption. Grading and packaging are unusual. Unmet demand exists in the food service and agro-tourism sector for the more exotic varieties of brassicas such as red or purple cabbage, cauliflower, broccoli and lettuces. Trinidad and Tobago is the main importer of cabbages and other brassicas. Cucumbers and gherkins: cucumbers are produced throughout most of the Caribbean, both by small- scale growers in most Caribbean countries and under greenhouse conditions by medium scale producers in Jamaica and Trinidad and Tobago. They are produced both for the local domestic market and for the tourism sector and for pickle processing.

CARICOM Fresh and Processed Market Opportunity Study 16

Ackee: while ackee is considered as a fruit tree, it is widely consumed as a vegetable and for that reason it is included in this sub category. Between 2004 and 2006, some 27 million kilograms of ackee, an average of 9 million kilograms per annum were produced in Jamaica17. Of this, over 80 percent was consumed in Jamaica mainly by households harvesting the fruit from neighbourhood trees. Ackee is sold fresh (84%), frozen (1%) and canned (15%), the latter two being the forms exported. In 1973 and 2005, exports of ackee to the US were banned because of concern about the natural toxin, hypoglycin, which is present in unripe fruit and the inability of the country to satisfactorily address the concern. In 2006, when exports began to regularize again after the 2005 hiccough, up to 1 million kilograms with an estimated value of over US$6 million were exported (Box 6), mainly to 31 countries. These include the UK (70%), US (18%), Canada (8%), which account for over 90 percent of exports, as well as France, Germany, Switzerland, Netherlands and CARICOM. Exports volume fell by 10 percent in 2007, while value went up by the same proportion driven by a 22 percent growth in price per kilogram.

Box 6: Ackee Export from Jamaica (kg), 2006-2007

Commodity 2006 2007 Growth (%) Ackee Volume (kg) 1,049,868 947,443 -10 Value (US$000) 6,540,942 7,215,430 10 US$/kg $6.23 $7.62 22

Source: Jamaica Ministry of Agriculture, 2009

Ackee also grows in Nigeria and Ghana but is not used for food. However, Haiti, Belize and the Ivory Coast are among countries where ackee is now being grown, canned and exported mainly to Canada and the UK by the latter two countries and to the US by Haiti. Despite this, the demand for ackee far outstrips supply and new countries are becoming interested in the product (e.g. Spain). Jamaican ackee also remains in much higher demand than others and command a significant premium in the market place (US$3-5 per can). Currently there are 20 processors and canned ackee for export (80%) and use by hotels (10%) food service operators (5%) and a limited amount for supermarkets (5%).

17 Statistical Institute of Jamaica (STATIN) CARICOM Fresh and Processed Market Opportunity Study 17

Summary: Market Opportunities and Prospects

While the vegetable sub-category faces numerous challenges, i.e. highly seasonal production, limited production of high value vegetables such as romaine lettuce, little GAP implemented, limited used of technology, it also offers substantial opportunities for growers. A recent study on vegetables in the OECS found that lettuce production is viable and is price competitive given the high transportation costs for imports18. Vegetable commodities with potential market opportunities include:  Green house - import substitution for tomatoes that are grown in green house technology to take advantage of the off-season when imports fill the shortfall in supply. Other commodities with good market potential that could be grown under green house technology include lettuce, bell peppers, and broccoli.  Fresh cut - other opportunities identified include fresh cut and packaged vegetables for the domestic and the inter-regional markets.  GAP - regular and specialty (i.e. romaine and iceberg lettuce, coloured bell peppers, broccoli) vegetables that are GAP certified are increasingly demanded by supermarkets and the tourism sector.  Organics - in addition to GAP certified vegetables, there is potential for a niche market in organics, although the market is small and highly specialized. Nevertheless, demand for organic vegetables from hotels to cater for customer safety and health concerns exist albeit small.  Extra regional exports, particularly to the U.S market, offer potential opportunities for growers. Trinidad and Tobago export pumpkin, eggplant, okra, cucumber and sweet peppers to the U.S market and export protocols are strict. Vegetable Value Chains Identified by Field Work for Possible Promotion: Apart from vegetable commodities with potential market opportunities, the study also identified vegetable value chains for possible promotion and development. These value chains include:  Canned/tetra pack ackee for export from Jamaica (Jamaica Agro-processors Association), which has great potential with growing demand from main markets (U.S, Canada and UK) outstripping supply.

18 ADB, 2008 Organization of Eastern Caribbean States Increasing Linkages of Tourism with Agriculture, Manufacturing and Service Sectors. CARICOM Fresh and Processed Market Opportunity Study 18

Herbs and Spices Sub-Category In 2006, over 74,000 metric tonnes of herbs and spices were available for consumption (Table 8). Of this, the most abundant was onions (59%), hot pepper (18%), garlic (13%), nutmeg (4%) and mixed spices (3%). Table 8: CARICOM Production and Availability of Fresh Herbs and Spices (MT), 2006

Commodity Production Import Export Availability Availability (%) Onions 16,356 28,003 35 44,323 59 Peppers (capsicum/pimento) 13,941 970 1,730 13,181 18 Garlic 0 9,602 5 9,597 13 Mixed Spices 2,648 325 66 2,908 4 Nutmeg 3,040 78 701 2,417 3 Celery 0 823 21 802 1 Coriander seeds 0 691 0 691 1 Other herbs and spices 125 1,259 392 992 1 Total 36,110 41,751 2,950 74,911 100 Sources: FAOSTATS, CRNM/ UNCOMTRADE, national statistics and interviews with industry experts CARICOM excluding Haiti

Herb and spice production in 2006 was estimated to be around 36,000 metric tonnes (Table 6). The bulk of this production was onions (45%) and hot pepper (39%) which accounted for some 84 percent of total production. Much of the hot pepper production goes into hot sauce processing and the main producer of both fresh pepper and hot sauce is Jamaica. Jamaica is also the main producer of onions (69%) followed by Guyana (15%), Barbados (7%) as well as Antigua and Barbuda and St Kitts and Nevis. It should be noted that while for some commodities there was congruence between the data sources, for other there was significant disparity. For example, for hot peppers in the FAOSTATS for Jamaica in 2005, it was 11,444 metric tonnes, and in the AAACP Baseline Study (2008) it was 5,722 metric tonnes and in the RTP Competitiveness Study (2007) it was 4,566 metric tonnes. This difference may arise from the definition of peppers (hot and/or sweet peppers) or the levels of transformation (fresh, dried peppers, pepper mash). The statistics used here was from the FAO and where possible updated with national statistics. Total herb and spice imports were estimated to be 41,000 metric tonnes and the main commodities were onions (67%) and garlic (23%). Other significant commodities included pepper (3%) celery (2%) and coriander seeds (2%). The major importing countries are Trinidad, Jamaica, Guyana, Suriname and Barbados. The largest export commodities from CARICOM by volume are hot peppers (59%) and nutmegs (24%). Most of the hot peppers are exported either as fresh or processed condiment products, by Trinidad and Tobago and Jamaica. Grenada is the main exporter of nutmegs. Other significant export commodities include curry, mixed spices, ginger, celery and black pepper.

CARICOM Fresh and Processed Market Opportunity Study 19

Market Opportunities by Commodity

The following draws heavily on the “Baseline Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries”, conducted by the FAO19 in 2008 which provides more detailed country and time series information on most fresh produce. The following provides greater understanding of the status and market opportunities of main fruit commodities and is captured in modified extracts below. Onion: the main countries producing onions in the Caribbean are Jamaica, Belize, Barbados, Antigua and Barbuda and St. Kitts and Nevis. The crop is grown almost exclusively for domestic consumption, and use in the condiment processing. The region regularly imports over 40,000 metric tonnes of onions (as compared with production of 50-60,000 metric tonnes and exports of 200-500 metric tonnes). The region is a strong net importer of onion, which offers a potential for further import substitution. Trinidad and Tobago imports from South America, and repackages for re-export to other countries. However, this can only be achieved if local production can become competitive with imports. The commodity continues to decline in most Caribbean countries, especially Jamaica and St. Kitts and Nevis. Peppers and pimentos: peppers represent the second most important herb and spice produced in the Caribbean. The subdivision of data into green and dried pepper production prevents an accurate assessment of the total volume of peppers produced in the region, but if dried pepper production is assessed on a green basis, Jamaica is clearly the main producer of chilli peppers with an estimated production of more than 50,000 metric tonnes.20 Regional imports of chilli peppers (both dry and green in terms of green pepper weight) total no more than 5,000 metric tonnes, while exports total approximately 12,000 metric tonnes of green pepper equivalent. On this basis, the region is a net exporter of peppers. Production growth was recorded in Antigua and Barbuda, Barbados, Jamaica, St. Vincent and the Grenadines, and Trinidad and Tobago. Of the green peppers produced, approximately 12 percent were exported, mainly by Jamaica and Trinidad and Tobago. Several countries import mash pepper from Latin America and from the Dominican Republic and re-export them after further processing and packaging. Jamaica does not export green chillies and peppers to any significant extent. Instead, it processes most of its production and exports it either as hot pepper sauces or as dried peppers. This is a dynamic manufacturing sub sector, which has been developed to a greater extent in Jamaica than in any other Caribbean country. Almost all the dried pepper production of the Caribbean takes place in Jamaica, while the production of hot pepper sauces is so great that the sub sector cannot meet demand from local production alone and is obliged to import chilli peppers, so that Jamaica is itself a net importer of hot peppers. Ginger: is produced predominantly in Jamaica and Guyana. Small-scale growers on mixed farms produce the crop. Although standards have been set for its production and export in a number of countries, it is generally marketed informally; standards are only used for export purposes. It is retailed at market stalls and in larger supermarkets and normally without packaging, although supermarket produce may sometimes be graded. Less than 10 percent of the domestic production is packaged for export. And most of this is traded regionally, although small quantities are imported by the United Kingdom, Holland, the United States and Canada. Annual imports for the region are of the same magnitude as exports. There continues to be growth in ginger exports in Jamaica, Trinidad and Tobago, and St. Vincent and the Grenadines.

19 EU funded All ACP Agricultural Commodities Programme 20 Base on dry pepper moisture content of no more than 12 percent, and green pepper, no less than 90 percent. On this basis 5,500 metric tonnes of dried peppers would be equivalent to 48,400 metric tonnes of green peppers. CARICOM Fresh and Processed Market Opportunity Study 20

Box 7: Selected Herbs and Spices Export from Jamaica, 2006-2007

Commodity 2006 2007 Growth (%) Pimento Volume (kg) 466,483 453,043 -3 Value (US$’000) 2,335,822 1,996,843 -15 US$/kg $5.01 $4.41 -12 Pepper Volume (kg) 195,445 124,434 -36 Value (US$’000) 596,964 381,692 -36 US$/kg $3.05 $3.07 0 Ginger Volume (kg) 10,512 6,648 -37 Value (US$’000) 41,112 27,056 -34 US$/kg $3.91 $4.07 4 Source: Jamaica Ministry of Agriculture

Export volume and value of pimento, pepper and ginger commodities fell in 2007 as production was affected by hurricane Dean in mid August.

Garlic: all of the garlic available for consumption is imported mainly from Asia (78%), Western Europe (10%) and the United States (9%). CARICOM imported around 9,000 metric tonnes of garlic in 2006 with Jamaica, Guyana, and Trinidad and Tobago importing up to 2,000 metric tonnes each annually (Table 8). Garlic is one of the main ingredients in the production of hot pepper sauce and given this significance, it may have import substitution opportunities provided production is competitive. Nutmeg and mace: the main producers of nutmeg in CARICOM are Grenada (77%), Trinidad and Tobago (10%), St Vincent and the Grenadines (10%), St Lucia (2%) and Dominica (1%). Around 2,000 metric tonnes were available for regional consumption in 2006 (Table 8). Nutmeg exports from CARICOM are almost completely dominated by Grenada with the main export markets of North America and Europe. Apart from dried nutmeg for export, there may be opportunities in value adding with the production of nutmeg oil to Europe. Others: Other significant herbs and spices include mixed spices, celery, cinnamon and cloves. Considerable quantities of dried packaged spices are imported into the region mainly by Trinidad and Tobago, Jamaica and Guyana.

CARICOM Fresh and Processed Market Opportunity Study 21

Summary: Market Opportunities and Prospects

Although small by volume, herbs and spices are high value commodities that could provide opportunities for growers in the region. The desk research pointed to several market opportunities based largely on market and supply volume gaps. Herb and Spice commodities with potential market opportunities include:  Onions - import substitution of onions for the domestic market and potential for exports to intra regional markets. Similarly, there may also be potential for processing of onion condiments for these markets as well.  Pepper and pimentos - exports of fresh, mash, dried and hot pepper sauce to intra and extra regional markets.

Herbs and Spices Value Chains Identified by Field Work for Possible Promotion: In addition to market opportunities, the main field work identified several herbs and spices value chains for possible promotion and development. These include:  Fresh pepper and hot pepper sauce - production of fresh pepper and agro-processing of hot pepper sauce by BAPS Group/Belize Hot Pepper Association form Belize for intra and extra regional export.  Fresh and processed onion and condiments - import substitution of fresh onions and processing for condiments in Antigua and Barbuda (CABA), and Barbados (Barbados Agricultural Society).

CARICOM Fresh and Processed Market Opportunity Study 22

Pulses and Nuts Sub-Category Pulses and nuts is the smallest of the all the sub-categories. Estimated CARICOM production in 2006 was around 20,000 metric tonnes with available production is dominated by groundnuts (43%), string beans (26%), beans (22%), and cashew (9%) (Table 9). Domestic production represented 74 percent of total availability. Jamaica and Guyana are the largest producers.

Table 9: CARICOM Production and Availability of Fresh Pulses and Nuts (MT), 2006

Commodity Production Import Export Availability Availability (%) Groundnuts 6,045 6,000 - 12,045 43 String beans 7,255 - - 7,255 26 Beans 6,140 - - 6,140 22 Cashew 1,450 1,018 1 2,467 9 Almond - 280 - 280 1 Mixed nuts - 303 200 103 0 Other pulses and nuts - 355 357 -2 0 Total 20,890 7,956 558 28,288 100 Sources: FAOSTATS, CRNM/ UNCOMTRADE, national statistics and interviews with industry experts CARICOM excluding Haiti

Imports accounted for 28 percent of total availability and consist largely of groundnuts, which make up 75 percent of total imports with cashew nuts, the second major import making up 13 percent. Trinidad and Tobago and Barbados are the largest importers of pulses and nuts. Most peas are imported in frozen retail ready packed and dried form. Market Opportunities by Commodity

In 2006 exports of processed pulses and nuts which are mainly dried or preserved amounted to around 7,000 metric tonnes, of which 82 percent were traded within the region. Exports were mainly of peas and beans from Guyana and Trinidad and Tobago, and mixed nuts from Jamaica mainly to Canada and the United States. Small quantities of these products are traded within the region. The balance was exported to the United States and Asia.

CARICOM Fresh and Processed Market Opportunity Study 23

Imports of dried and canned pulses and nuts in 2006 amounted close to 44,000 metric tonnes and were comprised mainly of peas and beans, mixed nuts and groundnuts products for sale to retail outlets and agro-processors. These were imported mainly from Canada, the United States and from within CARICOM.

Box 8: Growing Cashew in Belize

A survey carried out in 2000 revealed that Belize had 2,320 acres under cashew in two rural areas where cultivation exhibited low productivity, high field losses and laborious practices. After several meetings the cashew producers decided to organize themselves into one cooperative to transform backyard cashew operations into a business enterprise for local and export markets. The cooperative developed a business plan and presented a proposal to Government for assistance in the development of a processing facility, which was approved in 2002. The Crooked Tree cashew project is overseen and assisted by the Small Farmers and Business Bank, the International Institute of Cooperation on Agriculture (IICA), Agriculture Dept., Cooperative Department, Belize Audubon Society, Beltraide and the Cashew Cooperative. The processing plant is 2,400 square feet, constructed at a cost of $100,000. It will be able to process the roughly 1 million lbs of crude nuts working at full capacity for 208 days in the year. Initially the plant will process roasted nut and dehydrated false fruit. Other products such as wine, stew cashew, jams, cakes, ice cream etc. will continue to be processed by individuals until the plant develops further and can accommodate other products. However, standards will be developed so that these products are also marketed under the cashew cooperative label with guaranteed quality.

Summary: Market Opportunities and Prospects

The desk research pointed to several market opportunities based largely on market and supply volume gaps, as well as opportunities identified by existing studies that were undertaken in the region. Pulses and Nut commodities with potential market opportunities include:  Groundnuts: possible opportunities for import substitution and possibly to reduce the unmet demand by the condiments industry in the region;  Beans: fresh cut beans and fresh shelled peas frozen for the supermarkets and food service sectors;  Peas: dried pigeon peas and red kidney beans for import substitution in local markets in the region Pulses and Nut Value Chains Identified by Field Work for Possible Promotion The main field work did not identify any pulses and nut commodity value chains for possible promotion and development by the project.

CARICOM Fresh and Processed Market Opportunity Study 24

3. TRADE IN CARICOM FRESH PRODUCE PRODUCTS

Introduction This chapter provides an overview of the CARICOM fresh-produce trade as a basis for locating the value chains which might be short listed for selection for development and promotion. The overview focuses on CARICOM member states and does not include Haiti and the Dominican Republic, in order to understand the importance of fresh produce to smaller states. The main source of information for the trade analysis is the Caribbean Regional Negotiating Machinery (CRNM)/UN COMTRADE database. Throughout the analysis availability is used as a proxy for consumption, and is a representation of the amount of a commodity available for consumption without adjustment for post harvest loss or shrinkage in the distribution channel.

CARICOM Trade in Fresh and Processed Produce The total volume of CARICOM exports (fresh and processed) from 2003 to 2006 declined 8 percent, while export value increased 4 percent which was buoyed by an increase in value of processed exports over the same period (Table 10).

Table 10: Total Trade in Fresh and Processed Produce in CARICOM, 2003-2006

Category 2003 2004 2005 2006 Growth (%) EXPORTS Fresh Volume (mt) 398,170 286,697 229,328 267,455 -9 Value (US$) fob $141,077,051 $155,510,734 $129,980,118 $143,015,147 0 Processed Volume (mt) 117,043 91,982 102,293 94,284 -5 Value (US$) fob $98,912,375 $106,795,011 $130,439,791 $140,397,494 9 Total Exports (mt) 515,212 378,680 331,621 361,738 -8 Total Exports (US$) $239,989,427 $262,305,745 $260,419,909 $283,412,641 4 IMPORTS Fresh Volume (mt) 203,651 213,254 197,168 175,773 -4 Value (US$) fob $82,560,238 $87,104,965 $125,267,783 $115,573,287 9 Processed Volume (mt) 157,189 220,313 214,069 254,283 13 Value (US$) fob $161,887,468 $172,166,381 $211,723,787 $220,373,571 8 Total Imports (mt) 360,839 433,566 411,237 430,056 4 Total Imports (US$) $244,447,706 $259,271,346 $336,991,570 $335,946,858 8 Sources: CRNM/COMTRADE NB: Excluding trade from Haiti and Dominican Republic

CARICOM Fresh and Processed Market Opportunity Study 25

Between 2003 and 2006, several parts of the CARICOM region were devastated by hurricanes that affected agriculture production. Fresh produce exports declined 9 percent, falling from 398,170 metric tonnes in 2003 to 267,455 metric tonnes in 2006. The decline in export volume also affected export value, which recorded no growth over the period as a result. Similarly, the volume of processed produce exports also fell by 5 percent from 117,043 metric tonnes in 2003 to 94,284 metric tonnes in 2006. However, the value of these exports went up by 9 percent. Overall volume of CARICOM imports during the same period went up 4 percent with an 8 percent growth in value. The increase in imports was driven by the growing volume of processed imports which went up 13 percent from 157,189 metric tonnes in 2003 to 254,283 metric tonnes in 2006. Similarly, the value of imports also went up by 8 percent. Processed produce exports share of total produce exports declined significantly over the period accounted to 26% in 2006. Conversely processed produce import share of total produce imports grew to 59% in the same year. Market Opportunities and Prospects

The analysis suggest that the best opportunities for future growth are in value added and processed produce products which is driven increased demand from consumers for greater convenience. This category has shown the best performance in both imports and exports. Opportunities exist for reducing the disproportional increase in processed imports compared to processed exports by greater investment in value added product to both meet local and regional requirements and to gain increased share of the international export markets.

CARICOM Fresh and Processed Market Opportunity Study 26

Intra-Regional Trade Fresh Produce

Total intra-regional trade (imports and exports) of fresh produce in 2006 was estimated to be around 24,000 metric tonnes valued at US$13 million (Table 11). Fruit is the largest sub-category making up 59 percent, followed by roots and tubers (30%) and vegetables (11%) which accounted for most of the trade. Between 2003 and 2006, the volume of traded fresh produce declined by 1 percent while total value increased 3 percent. Underlining this performance was the steady increase in volume and value of roots and tubers and to a lesser extent herbs and spices, which was offset by decreases in exports of the other categories.

Table 11: Intra Regional Trade of Fresh Produce in CARICOM, 2003-2006

Commodity 2003 2004 2005 2006 Growth Sub Category (%) Share (%) Fruits 59 Volume (mt) 17,895 15,888 15,828 14,181 -5 Value (US$) fob $7,235,871 $8,559,614 $7,236,309 $6,836,962 -1 Roots and Tubers 30 Volume (mt) 4,264 4,929 6,486 7,221 17 Value (US$) fob $2,978,104 $3,413,758 $4,250,778 $4,497,492 13 Vegetables 11 Volume (mt) 3,141 2,887 3,831 2,626 -4 Value (US$) fob $952,503 $2,303,359 $2,588,491 $1,295,980 9 Herbs and Spices < 1 Volume (mt) 169 181 122 174 1 Value (US$) fob $415,684 $552,308 $421,380 $481,260 4 Pulses and Nuts < 1 Volume (mt) 96 77 80 19 -20 Value (US$) fob $51,787 $60,753 $57,753 $13,406 -19 Total Volume (mt) 25,565 23,962 26,346 24,221 -1 Total Value (US$) $11,633,949 $14,889,792 $14,554,712 $13,125,100 3 Sources: CRNM/COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

The decline trade in fruit, the largest sub-category in terms of volume (5%) and value (1%) was due to poor showing of coconuts (-21%), mangoes (-9%), avocadoes (-6%), pineapple (-4%) and the largest commodity by volume, bananas (-1%). The fruits showing the strongest growth were papaya (39%), melons (14%) and mixed fruits (13%). Of significance in the latter were increased intra regional trade was recorded for melons to Barbados, and Antigua and Barbuda, mixed fruits to Barbados, Trinidad and Tobago and Grenada, and papaya to Barbados. Guyana (54%), Trinidad and Tobago (23%), St. Vincent (14%) and Dominica (10%) were the largest suppliers of melons, mixed fruits and papaya. All of the other fresh fruits declined in trade. Roots and tubers, the second largest sub-category, showed the strongest growth trend posting a 17 percent increase in volume from around 4,000 metric tonnes in 2003 to 7,000 metric tonnes in 2006. Trade value

CARICOM Fresh and Processed Market Opportunity Study 27 also went up 13 percent over the same period from US$2,978,104 to US$4,497,492. Of the major roots and tubers produced, sweet potatoes showed the strongest growth in volume (32%), followed by mixed roots (yams, dasheen, tannia and eddoes) (16%) and ginger (14%). Other minor roots and tubers showing increases were potatoes (48%) and tumeric (58%). Exports of carrots (-11%) and mixed vegetable roots (-25%) declined. Cassava exports remained relatively stable. The major exporter of roots and tubers to the region was St. Vincent and the Grenadines, which accounted for 90 percent of exports and realized growth of 21 percent over the period. Other significant exporters were Dominica (5% exports; -2% growth) and Guyana (4% exports; 12% growth). Trinidad and Tobago was the major importer (79%) and growth market (21%) for roots and tubers. Other significant importers from within the region were Barbados (8%), Grenada (6%) and Antigua (5%) The vegetable sub-category, for which trade is significantly smaller than fruit and roots, saw a 4 percent decrease in export volume from 3,141 metric tonnes in 2003 to 2,626 metric tonnes in 2006. Similarly, the value of vegetable exports however increased 9 percent from US$952,503 to US$1,295,980 over the same period. The main products showing growth during the period were tomatoes (17%), and mixed vegetables (13%). Growth was also recorded in fresh peppers. Trinidad and Tobago and Guyana were the major exporter of mixed vegetables and tomatoes to the region with growth of 31 percent and 13 percent respectively. Barbados (16% growth) and Antigua (10% growth) were the main importers of these vegetable items showing positive growth. Herbs and spice exports within the region grew by 1 percent in volume and 4 percent in value between 2003 and 2006. The main products showing growth were exports of mixed spices (16%), nutmeg and mace (9%). Onion exports fell by 23 percent. The main suppliers of the herbs and spices showing growth were St. Vincent and the Grenadines and Grenada. The main importers from CARICOM of these herbs and spices were Trinidad and Tobago, Jamaica, Guyana, Barbados, Antigua and Dominica. The volume of pulses and nuts traded over the same period declined 20 percent with value also dropping by 190 percent. Pulses and nuts is a relatively small sub-sector with production grown mainly for domestic consumption with some exports. Exports volume declined from 100 to 20 metric tonnes a year from 2003 to 2006. Export of peas and beans and mixed nuts which are the main commodities declined an average of 21 and 13 percent annually. Guyana was the main exporter to the region and Barbados the main importer from the region.

CARICOM Fresh and Processed Market Opportunity Study 28

Processed Produce

Intra regional trade of processed produce was estimated at 44,527 metric tonnes with a valued of US$60 million in 2006 compared to the fresh produce trade which was 24,221 metric tonnes valued at US$13 million. The growth in intra regional trade of processed produce remains positive with the volume of trade increasing 5 percent and value increasing 17 percent between 2003 and 2006 (Table 12).

Table 12: Intra Regional Trade of Processed Produce in CARICOM, 2003-2006

Commodity 2003 2004 2005 2006 Growth (%) Fruits Volume (mt) 24,108 26,136 22,796 30,715 7 Value (US$) fob $20,745,755 $27,154,228 $32,192,032 $39,837,728 23 Pulses and Nuts Volume (mt) 7,759 4,832 7,689 6,242 -5 Value (US$) fob $6,176,848 $6,725,248 $9,347,017 $9,745,837 14 Vegetables Volume (mt) 4,393 3,889 5,286 5,780 8 Value (US$) fob $4,544,930 $3,824,259 $5,250,783 $5,337,241 4 Herbs and Spices Volume (mt) 879 798 1,107 1,390 15 Value (US$) fob $1,974,931 $1,708,857 $2,360,794 $2,450,731 6 Roots and Tubers Volume (mt) 412 834 426 401 -1 Value (US$) fob $2,606,819 $2,668,543 $3,130,307 $3,162,193 5 Total Volume (mt) 37,551 36,489 37,304 44,527 5 Total Value (US$) $36,049,282 $42,081,136 $52,280,933 $60,533,729 17 Sources: CRNM/COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

Growth in volume was strongest in the vegetable category and in the fruit category in value. All categories of processed produce realized growth in value. Decreases in the volume of processed produce were recorded for pulses and nuts and roots and tubers. Processed fruit products traded within the region increased by 7 percent and 23 percent respectively in volume and value between 2003 and 2006. In 2006, trade in processed produce was 30,000 metric tonnes valued at US$40 million. Average annual growth was most significant in mixed fruit and fruit and vegetable products (over 100 percent), coconut products (86%) and pineapple products (8%). Juices accounted for over 50 percent of processed products and grew an average of 57 percent annually during the period. It was not possible to determine the amount of processed fruit products that were generated from semi-processed imports. Trinidad and Tobago was the largest supplier to the region and posted average growth of 52 percent during the period. Guyana also posted annual growth of 111 percent, Barbados 13 percent and Jamaica 5 percent. Belize the other major supplier to the region recorded a 14 percent decline. Dominica (96%), St. Kitts (19%), St. Lucia (18%), Jamaica (14%), Guyana (13%) and Antigua (12%) recorded the highest increase in import of processed fruit products from within the region.

CARICOM Fresh and Processed Market Opportunity Study 29

Processed pulses and nuts were the second largest group of products traded within the region and between 2003 and 2006 the volume traded declined by an annual average of 5 percent in volume but increased by an average 14 percent in value. Positive annual growth in the volume of trade of processed preserved groundnuts (42%), mixed nuts (21%) and peas and beans (30%), were offset by a 14 percent average decline in exports of dried peas and beans which was the largest group of products. The main suppliers to the region were Belize and Trinidad and Tobago, with positive annual growth of 34 percent in Trinidad and Tobago’s exports compared to an average decline of 14 percent in Belize exports. Whilst Jamaica was the largest importer, the largest growth in imports from the region was in Antigua and Barbuda. Intra CARICOM trade in processed vegetable products increased 8 percent and 4 percent in volume and value between 2003 and 2006. This growth was driven by an average annual 8 percent increase in exports of prepared preserved tomato products and which accounted for more than 90 percent of the trade. Trinidad and Tobago followed to a lesser extent by Jamaica and Barbados were the largest net exporters to the region. Barbados and Jamaica were the largest net importers. There was also strong positive growth of 15 percent in volume and 6 percent in value of intra CARICOM trade in processed herbs and spices between 2003 and 2006. This growth was led by an average 15 percent increase in the exports of preparations for sauces and prepared sauces, mixed condiments and seasonings from Trinidad and Tobago mainly to Barbados, Grenada, Guyana and Suriname. Trade in processed roots and tubers products was the smallest category and declined by 1 percent in volume with an average increase of 5 percent in value. The trade was made up of the export of processed potato products from Trinidad and Tobago to Jamaica, Barbados and Guyana.

Market Opportunities and Prospects Preliminary examination of intra regional trade based on market and supply volume over the period 2003 to 2006 suggests that market opportunities exist for: Fresh Produce

 Papaya, melons and mixed fruits from Guyana, Trinidad and Tobago, St Vincent and the Grenadines and Dominica to Barbados and Antigua and Barbuda.  Coconuts and coconut water from Guyana to Trinidad and Tobago  Roots and tubers from St Vincent and the Grenadines, Guyana and Dominica to Trinidad and Tobago, Barbados, Grenada and Antigua  Tomatoes and mixed vegetables from Trinidad and Tobago and Guyana to Barbados and Antigua  Herbs and spices from St Vincent and Grenada to Trinidad and Tobago, Jamaica, Guyana, Barbados, Antigua and Barbuda and Dominica. Processed Produce

 Pre-cut and packaging of roots and tubers such as dasheen and eddoes. These products, in particular dasheen, are appearing on Supermarket shelves (i.e. Hi Lo in Trinidad and Tobago) indicating there is potential demand driven by consumer convenience. Research work on value adding on cassava (i.e. cassava flour) is currently undertaken by CARDI in Trinidad and Tobago. This also offers a potential market for farmers apart from selling fresh produce.  Agro-processing is a growing sub-sector in the region, in particular fruit juice production (i.e. orange). More so is the production of hot pepper sauce and there is a huge demand for chilli peppers to satisfy processing in Jamaica and Trinidad and Tobago. Additionally, there is potential in the primary processing of coconut water.

CARICOM Fresh and Processed Market Opportunity Study 30

Extra Regional Trade Overall trade between CARICOM and extra regional markets declined 4 percent, while the total value of trade grew 6 percent from 2003 leading up to 2006 (Table 13). The direction of trade has been dominated by the strong growth in imports of 5 percent in volume and 9 percent growth in value from extra regional markets. This surge in imports was driven by increased volume of processed products and high valued fresh produce, which have grown steadily over the years. At the same time, CARICOM exports have declined 9 percent, in particular processed products, while registering a 3 percent growth in value.

Table 13: Extra Regional Imports of Fresh and Processed Produce in CARICOM, 2003-2006

Category 2003 2004 2005 2006 Growth (%) EXPORTS Fresh Volume (mt) 340,691 219,793 184,715 234,616 -9 Value (US$) $112,214,022 $115,925,186 $100,027,211 $122,398,968 2 Processed Volume (mt) 50,887 42,275 52,963 29,708 -13 Value (US$) $45,803,888 $48,046,197 $60,986,551 $52,158,914 3 Total Exports (mt) 391,577 262,068 237,678 264,324 -9 Total Exports (US$) $158,017,910 $163,971,384 $161,013,762 $174,557,882 3 IMPORTS Fresh Volume (mt) 96,605 116,797 88,838 72,611 -7 Value (US$) $39,758,183 $47,178,117 $73,575,825 $60,563,542 11 Processed Volume (mt) 80,379 91,543 91,314 144,942 16 Value (US$) $82,848,324 $96,505,035 $108,939,233 $114,861,601 9 Total Imports (mt) 176,984 208,340 180,153 217,553 5 Total Imports (US$) $122,606,508 $143,683,152 $182,515,058 $175,425,143 9

Total Trade (mt) 568,561 470,408 417,831 481,877 -4 Total Trade (US$) $280,624,418 $307,654,536 $343,528,820 $349,983,025 6 Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

CARICOM Fresh and Processed Market Opportunity Study 31

The United Kingdom is the largest market for CARICOM exports of fresh and processed products in 2006, accounting for 73 percent of total exports and 59 percent in value. This was followed by the United Sates with 25 percent in export volume and 38 percent in value of total exports. Canada accounted for 1 percent of the volume and 3 percent of the value. In addition, the United States was also the largest market for processed produce products from CARICOM (Table 14).

Table 14: CARICOM Exports to Main Extra Regional Markets, 2006

Item Fresh Processed Total Percent (%) United Kingdom Volume (mt) 174,868 1,548 176,417 73 Value (US$) $73,591,986 $5,182,306 $78,774,292 59 United States Volume (mt) 38,089 22,664 60,752 25 Value (US$) $19,297,989 $30,964,135 $50,262,124 38 Canada Volume (mt) 2,902 505 3,408 1 Value (US$) $2,105,269 $2,485,975 $4,591,243 3 Total Exports (mt) 215,859 24,717 240,577 Total Exports (US$) $94,995,244 $38,632,415 $133,627,659 Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

CARICOM Fresh and Processed Market Opportunity Study 32

The European Union Market - United Kingdom

The main export market for fresh produce in the EU is the United Kingdom. Between 2003 and 2006, the overall volume of exports to this market fell 10 percent with a modest growth of 2 percent in value (Table 15). In addition to the UK market, there is also export from Suriname going into other European markets such as Amsterdam. Apart from CARICOM exports there are also exports from OECS21 to the EU, however, these are not included in the analysis. Fruit is the largest of the fresh produce exports to the UK and the main commodity is banana, which makes up around 80-90 percent of total fruit exports. Other commodities include citrus, mangoes, papaya and avocados. Growth in export volume has declined 10 percent and the drop in volume is related to the reduction of market preferences into the European market. In contrast, the value of exports had a modest growth of 2 percent. Trade in mixed tropical fruits increased 24 percent in volume and 11 percent in value and mangoes by 9 percent and 6 percent respectively. The major export commodities of banana and citrus declined 8 percent and 18 percent respectively. The main fruit exporters from CARICOM are Belize, Jamaica, Dominica, Windward Islands and Suriname.

Table 15: CARICOM Exports of Fresh Produce to the United Kingdom, 2003-2006

Commodity 2003 2004 2005 2006 Growth (%) Fruits Volume (mt) 269,417 163,962 135,733 174,868 -10 Value (US$) fob 68,447,722 69,329,637 56,046,015 73,591,986 2 Roots and Tubers Volume (mt) 2,526 3,037 2,016 2,703 2 Value (US$) fob 3,054,465 3,628,350 3,678,622 3,888,207 6 Vegetables Volume (mt) 219 259 156 200 -2 Value (US$) fob 272,696 370,725 194,261 270,721 0 Herbs and Spices Volume (mt) 79 48 48 33 -20 Value (US$) fob 333,965 146,025 213,251 89,304 -28 Pulses and Nuts Volume (mt) 29 2 - - -66 Value (US$) fob 7,191 4,487 175 527 -48 Total Volume (mt) 272,271 167,307 137,953 177,804 -10 Total Value (US$) fob 72,116,039 73,479,225 60,132,324 77,840,746 2 Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and Dominican Republic

Roots and tubers is the second largest fresh produce export to the UK. Export volumes from 2003 up to 2006 fluctuated between 2,000 and 3,000 metric tonnes with an estimated value of around US$3.5 million a year. Over the same period, the market for roots and tubers has grown both in volume and value of 2 percent and 6 percent respectively. This growth in the market appears to be driven by demand from

21 Organization of Eastern Caribbean States CARICOM Fresh and Processed Market Opportunity Study 33 specialised wholesale markets that cater for the ethnic population both with Caribbean and African extraction. The main export commodities are yam and sweet potato which accounted for 90 percent of total exports with the remainder made up by other roots and tuber commodities such as eddoes. The main exporters are Jamaica, St Vincent and the Grenadines, and Suriname. Vegetable exports over the years have been largely limited to around 150 to 200 metric tonnes with an estimated value of around US$300,000 a year. Market growth for vegetables has declined 2 percent with no growth in value. While the decline is modest, the volume of exports to this market is less significant to the larger sub-categories of fruit and roots and tubers. The main commodity exported are mixed vegetable, consisting mainly of carrots, beans, peas and cauliflower. The main exporters are Dominica, Jamaica, St Lucia and Suriname. Exports of herbs and spices between 2003 and 2006 have had no market growth. Volume has been declining over the years from a high of 79 metric tonnes in 2003 to 33 metric tonnes in 2006. A similar trend is also observed with export value, plummeting from US$333,965 in 2003 to US$89,304 in 2006. The main export commodity is hot pepper and the main exporters are Grenada and Suriname. Other exporters with relatively small volumes include St Lucia and Jamaica. The export market for pulses and nut is quite limited and small. Trade figures indicate a shrinking market, both in volume and value. The largest volume exported was 29 metric tonnes with an estimated value of US$7,000 in 2003. Since then, export volume and value began to slide with by 66 percent and 48 percent respectively. Green peas are the main export commodity with only a couple of exporters, namely Jamaica and Suriname. Market Opportunities and Prospects

Export opportunities in the UK will continue to revolve around fruits, and roots and tuber commodities. While banana and citrus will remain the largest exports from the region, there may be opportunities to further create value for other export commodities. In the roots and tuber sub-category, some exporters believe that sweet potato and dasheen is a growing market in the EU and that CARICOM could be price competitive due to low shipping costs created by banana exports, particularly from Jamaica and the Windward Islands. Industry commentators also believe that other market opportunities in the EU could include processed products such as pickled gherkins and hot pepper sauce, which potentially be developed into a niche market product. These products, while attractive, would require a thorough market analysis to determine their export viability and sustainability.

CARICOM Fresh and Processed Market Opportunity Study 34

United States of America

The US is the second largest export market for CARICOM fresh produce. Between 2003 and 2006, the region’s share of this market by volume fell 5 percent while overall value grew 3 percent (Table 16). Total volume of exports over the same period ranged between 40,000 to 60,000 metric tonnes with an estimated value of around US$30-35 million a year. Exports to the US market are dominated by fruits and roots and tubers. Table 16: CARICOM Exports of Fresh Produce to the United States, 2003-2006

Commodity 2003 2004 2005 2006 Growth (%) Fruits Volume (mt) 43,479 30,006 31,902 38,089 -3 Value (US$) fob 13,661,501 15,502,735 16,626,661 19,297,989 9 Roots and Tubers Volume (mt) 9,216 8,831 5,344 7,721 -4 Value (US$) fob 11,487,544 12,816,724 11,016,259 12,340,898 2 Vegetables Volume (mt) 7,685 5,298 3,069 4,045 -15 Value (US$) fob 4,738,011 4,970,696 3,488,316 3,632,100 -6 Herbs and Spices Volume (mt) 724 479 709 261 -23 Value (US$) fob 2,838,534 1,761,571 1,850,116 987,016 -23 Pulses and Nuts Volume (mt) 332 271 253 197 -12 Value (US$) fob 492,471 340,686 467,647 426,783 -4 Total Volume (mt) 61,436 44,885 41,276 50,312 -5 Total Value (US$) fob 33,218,061 35,392,412 33,448,999 36,684,785 3 Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and the Dominican Republic

Fruit export volume fell 3 percent while value went up 9 percent between 2003 and 2006. The slowdown in export volume in 2004 and 2005 was due to devastation caused by hurricane Ivan in 2004 that affected major fruit exporting countries such as Jamaica. The main export commodities are papaya (59%) citrus (39%), banana (1%) and melon (1%). These volumes do not include other fruits that are exported as processed or semi-processed. The main exporting countries from CARICOM are the Bahamas, Belize, Jamaica, Antigua and Barbuda and Dominica. A similar trend for roots and tuber exports was recorded over the same period. Export volume declined 4 percent with value increased by 2 percent. The main export commodities are yams, cassava, and dasheen. Jamaica dominates the export market for roots and tubers with other exporters being Dominica, Grenada, Guyana, Trinidad and Tobago, and St Vincent and the Grenadines. Overall volume and value of vegetable exports to the US declined 15 and 6 percent respectively from 2003 to 2006. The market for fresh vegetables is relatively competitive with larger producers such as Mexico also supplying the same market. Major suppliers from CARICOM include Trinidad and Tobago and Jamaica. Other supplier’s include Antigua and Barbuda, Grenada, Guyana, and St Lucia.

CARICOM Fresh and Processed Market Opportunity Study 35

Export of herbs and spices have declined over the years from a high of 724 metric tonnes in 2003 to a low of 261 metric tonnes in 2006, falling by some 23 percent. Similarly, export value has also followed the same pattern, falling by 23 percent. Hot pepper is the main export commodity with the main exporters being Trinidad and Tobago, Belize and Jamaica. A similar situation is happening with pulses and nuts. This sub-category is relatively small with export volumes varying between 100 and 300 metric tonnes a year. Between 2003 and 2006 the volume and value of exports have declined by 12 and 4 percent with strong competition from major producers such India, United Kingdom, United States and Mexico. Exports consist mainly of mixed nuts. Market Opportunities and Prospects

The improvement in quarantine treatment, packaging and freight technology (i.e. heat treatment of fruit to rid fruit fly) provides scope for cost effective exports to the US. Trade figure indicate growth in the papaya market with the case of exports from CARICOM countries of Belize and Jamaica (Box 9). Apart from these two major countries, other producers include Dominica, Guyana, and Trinidad and Tobago. Box 9: Fresh Papaya Imports to the United States (MT), 2003-2007

2003 2004 2005 2006 2007 Growth (%) Belize Volume (mt) 15,723 24,217 27,716 33,889 33,489 16 Value (US$’000) cif 7,722 11,180 12,907 15,649 13,640 12 Jamaica Volume (mt) 1,494 996 1,033 1,319 992 -8 Value (US$’000) cif 2,487 1,687 1,734 2,289 1,915 -5 Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, 2009

Fresh papaya exports from Belize to the US have grown by 16 per cent in volume and 12 per cent in value from 2003 to 2007. Apart from Belize, exports from Jamaica have been affected both by hurricanes (i.e. Ivan in 2004) and recently by disease*.

* Baseline Review of Non-Traditional Commodities Produced in the Caribbean ACP Countries, 2008 p45

CARICOM Fresh and Processed Market Opportunity Study 36

A recent study of value adding standards in the North American food market found a growing trend in the demand for organic and certified fruit and vegetables. Potential commodities identified by the study include organic pineapple, mango and banana as well as the traditional commodities of coffee and cocoa. The majority of CARICOM countries already export some of these commodities to the US and Canada, however, there is real potential in pineapple and consideration to thoroughly explore the feasibility of this commodity as an organic export maybe worthwhile. An extract from the study is shown in Box 10 below.

Box 10: Market Prospects for Developing country of Certified Fruits and Vegetables

In terms of product categories, the best market opportunities are currently seen in organic tropical fruits due to the current undersupply on the North American market. Supply appears to be particularly short for organic pineapples and mangoes. Developing countries producing organic pineapples should take advantage of the rapidly growing US market. With overall pineapple imports standing at over 660,000 metric tonnes, North America accounted for 40 per cent of world imports in 2006. Pineapple imports have been rising steadily in the United States, increasing about five-fold in the ten year period 1995-2005. Prices for conventional pineapples have contracted since 2003, as supply has expanded faster than demand. The unit value of imports was US$460 per tonne in 2005, down from US$580 per tonne in 2003.

Source: Value-adding Standards in the North American Food Market – Trade Opportunities in Certified Products for Developing Countries, FAO, 2008

CARICOM Fresh and Processed Market Opportunity Study 37

Canada

Overall, CARICOM exports to Canada from 2003 to 2006 while comparatively small to the US market it has been a growing market in value. Export volumes to Canada fluctuated between 5,000 and 7,500 metric tonnes with estimated value ranging from US$6-7.5 million a year (Table 17). Over the same period, market growth declined in volume by 2 percent while value surged moderately by 3 percent.

Table 17: CARICOM Exports of Fresh produce to Canada, 2003-2006

Commodity 2003 2004 2005 2006 Growth (%) Fruits Volume (mt) 2,405 2,475 2,464 2,902 5 Value (US$ ) fob 1,560,123 1,585,223 1,361,957 2,105,269 8 Vegetables Volume (mt) 1,680 2,801 1,155 1,419 -4 Value (US$ ) fob 1,480,604 1,535,450 1,223,417 1,555,499 1 Roots and Tubers Volume (mt) 2,370 1,682 1,237 1,566 -10 Value (US$ ) fob 2,680,297 2,554,197 2,492,738 2,818,588 1 Herbs and Spices Volume (mt) 257 288 290 294 3 Value (US$ ) fob 940,525 1,120,437 1,143,467 1,178,205 6 Pulses and Nuts Volume (mt) 271 355 340 319 4 Value (US$ ) fob 218,374 258,238 224,311 215,876 0 Total Volume (mt) 6,983 7,601 5,486 6,500 -2 Total Value (US$ ) fob 6,879,922 7,053,545 6,445,888 7,873,437 3 Sources: CRNM/UN COMTRADE NB: Excluding fresh produce from Haiti and the Dominican Republic

The fruit sub-category is the largest of the fresh produce exported to Canada and is also the best performing, showing growth of 5 percent in volume and 8 percent in value. Fruit exports, including papaya mainly from Belize and Jamaica is one of the main fruit commodities on the market. Volume of vegetable exports during 2003 and 2006 declined 4 percent, although value went up by 1 percent. The vegetable sub-category in the Canadian market, like the US market is quite competitive with exports from other more major vegetable producing countries such as Mexico dominate the market. A similar trend is happening with roots and tubers. Export volumes have been fluctuating between 1,000 and 2,000 metric tonnes a year with value growing by 1 percent Herbs and spices in addition to pulses and nuts exports are small in volume compared to what goes through the US market. However, these two sub-categories are experiencing growth in volume of 3 percent for herbs and spices and 4 percent for pulses and nuts. Value of exports has also gone up for herbs and spices while pulses and nuts remain the same with relatively no growth over the same period.

CARICOM Fresh and Processed Market Opportunity Study 38

Market Opportunities and Prospects

Although the Canadian market is relatively small in comparison to the other two main extra regional markets, it nevertheless has potential for growth in the future, particularly in the fruit, herb and spices and pulses and nuts sub-categories. In Box 11, the value of imports from Guyana has enjoyed growth from 2004 to 2008 with the largest growth in the edible fruits and nuts category. Box 11: Value of Imports of Fresh Produce from Guyana to Canada (US$'000) cif, 2004-2008

2004 2005 2006 2007 2008 Growth (%)

Guyana Edible fruits and nuts 127,638 212,846 218,096 307,721 259,549 15 Edible vegetables and 149,855 85,524 68,071 69,725 170,364 3 certain roots and tubers Sub Total 277,493 298,370 286,167 377,446 429,913 9

Source: Industry Canada, 2009. http://www.ic.gc.ca

Summary Overall, the market opportunities for the extra regional markets will continue to rely on what is already being exported. In the UK market, sweet potato and dasheen is believed to have potential given the demand for these exports. Others opportunities require the development of a niche market for products such as pickled gherkins and hot pepper sauces targeting the large Caribbean population. For the US market, potential market opportunities exist in the organic and certified market segments for fruits and vegetables. Organic pineapple has good prospects given the growth of imports in the market over the years. Herbs and spices as well as pulses and nuts have good prospects for the Canadian market. These exports have enjoyed growth over the years, although it represents a small amount of the total exports from CARICOM into this market.

CARICOM Fresh and Processed Market Opportunity Study 39

4. VALUE CHAIN ANALYSIS AND SELECTION

Introduction Having explored the opportunities identified by reviewing the secondary data sources and existing studies, the market opportunity consultants conducted interviews with food retailers, hotel operators, agro-processors, exporter associations, agri-business associations, farmers’ organisations and government officials to develop profiles of several value chains for further development. Field interviews were conducted in all CARICOM states except Haiti and St Kitts and Nevis. This chapter assembles the value chains explored by the consultants in the field and for presentation to the regional value chain workshop for selection.

Profile of Value Chains Short listed for Selection. The fourteen value chains short listed for further profiling are summarized in Table 18. For each of the value chains a 4 to 6 page profile was prepared which included in many cases a description of the chain, a value chain map, analysis of market opportunities, a comparison of price competitiveness, a value chain margin build up, a gap analysis and some indication of interventions required. Summary profiles of the value chains are provided below.

Table 18: Shortlist of Value Chains